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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Yougang Xiao who wrote (110954)	5/15/2000 12:19:00 PM
From: Yougang Xiao	Read Replies (1) \| Respond to of 1578552

From Albert 2 of 3: Contrary to Wall Street, Martin Capital Sees Only Quarter-Point 5/15/0 9:20 (New York) Fed Hike AUSTIN, Texas, May 15 /PRNewswire/ -- Contrary to Wall Street's expectations that the Federal Reserve will raise interest rates one-half point at its May 16 meeting, Martin Capital Advisors chief investment officer Paul Martin believes the hike will be a quarter-point and may be the Fed's last for awhile. "After reviewing our proprietary Fed Funds model against this week's data, we are optimistic, and look for a limited rate hike," Martin said. According to the firm's senior equity strategist, Louis Kokernak, the producer price index and retail sales data indicate that the economy is finally slowing. "Despite the recent pullback, we are in a powerful bull market. While we could see lower prices, when the market does turn, it could do so abruptly and climb sharply. At current values it makes sense to be fully invested," he said. "We are fully invested. After the mid-April sell-off, we looked at risk- reward characteristics in the market. We saw considerably less risk and took action. Should we see further significant declines, we may use leverage to buy bargains," Paul Martin said. He is focused on the long term, and likes quality technology stocks. Among Flexible Portfolio holdings that have held up well recently are Advanced Micro Devices (NYSE: AMD), Applied Materials (Nasdaq: AMAT), CitiGroup (NYSE: C), Dell (Nasdaq: DELL), General Electric (NYSE: GE), and Medtronic (NYSE: MDT). The Martin Capital Advisors average Flexible Portfolio followed its 17.7-percent 1st quarter gain down only 5.1 percent for April, ahead of the market's broader losses. Martin Capital Advisors' exclusive Flexible Portfolios returned 58.2 percent in 1999 and 78.8 percent in 1998. They averaged an annual return of 45.9 percent over the last five years (1/1/95 to 12/31/99) and 32.5 percent since their January 1991 inception. * Martin Capital Advisors is a registered investment advisor with approximately $100 million under management in individual and institutional portfolios, the no-load Martin Capital Austin Opportunity Fund and Martin Capital U.S. Opportunity Fund, and the Martin Capital Marathon Hedge Fund. Offices are at 816 Congress Ave., Ste. 1540, Austin, TX, 78701. Contact Jeff Phillips (jeff@martincapital.com) 1-877-477-7036 ext. 104. Performance data is available at www.martincapital.com.