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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: chrisco who wrote (4105)	1/3/2000 11:35:00 AM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 14638

Copied from the Bob Brinker thread: To: Justa Werkenstiff who wrote (10775) From: Jeffrey D Monday, Jan 3, 2000 10:32 AM ET S&P Personal Wealth recommends maintain bullish policy. I am, and dipped in to the Internet myself last week with Inktomi {INKT} after the split. Jeff Monday January 03, 2000 (08:00 am ET) Maintain Bullish Investment Policy We continue to advise that stocks comprise a sizable 65% of portfolios By Arnie Kaufman, Editor, The Outlook NEW YORK, Jan. 03 (Standard & Poor's) - The big technology and communications winners of 1999 are bound to run into profit taking in the near term. Investors can now sell and establish gains without having to give the IRS its share until April 2001. Year-end window dressing is over, and money managers will seek to reduce risk exposure by rebalancing portfolios that have become top-heavy in the volatile market-leading sectors. Some attention will shift to enticing values among the many non-tech laggards that were hit recently by tax-loss selling. As of the close last Thursday, when we went to press early because of the holiday, the S&P 500 was up 19% for 1999, following a 27% gain for 1998. Fifty-three percent of the stocks in the S&P 500, however, were under water for 1999 and 41% lost ground in 1998. As many as 230 of the current 500 issues are now selling below their levels two years ago. As for earlier years, notwithstanding a large-cap preference even then, losses were posted by only 19% of the index's stocks in 1997, 26% in 1996 and 13% in 1995. Two-thirds of the gain in the "500" in 1999 came from just 10 issues-Microsoft, Cisco, GE, Wal-Mart, Oracle, Nortel, AOL, Sun Microsystems, Intel and Qualcomm. The top 10 contributors of the four preceding years provided 44%, 24%, 34% and 22% of the index's total gains, respectively. Despite the exceptional concentration of interest in technology and the group's vulnerability in the period just ahead, we believe substantial representation here remains justified. We expect the tech stocks to post the largest net gains for 2000 as a whole, and this strength should help extend the overall bull market. The sector has powerful momentum in its favor and stands to benefit most as the center of the technological revolution that is generating productivity gains and above-trend economic growth. Tech stocks have bounced back strongly from each of the several setbacks in recent years, and the profit taking we see ahead should be met fairly quickly by dip buying. It would probably take descending peaks in the Nasdaq over at least two or three trading cycles to turn psychology around.