Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Fun Loving Clowns - Laughing All The Way To The Bank -- Ignore unavailable to you. Want to Upgrade?

To: Eashoa' M'sheekha who wrote (6)	6/26/2000 8:47:00 PM
From: Eashoa' M'sheekha	Read Replies (2) \| Respond to of 28

Jack Applegate, Lehman Brothers' Chief Strategist The TSC Streetside Chat: By TSC Staff 6/24/00 7:58 AM ET Goldman Sachs' Abby Cohen is Wall Street's resident guru and DLJ's Thomas Galvin is the financial media's latest favorite. But market professionals know Lehman Brothers' chief investment strategist Jeffrey Applegate deserves at least as much praise for the simple reason that he's been uncannily right about the market for several years running. Applegate has consistently ranked among the top stock pickers on Wall Street in recent years thanks to his consistent bullishness on technology stocks. He has been optimistic about the sector since he became Lehman's chief strategist in 1995, and hasn't deviated from that view since. Having gone through the financial version of hell and back this past spring with the group, Applegate thinks the road ahead is a lot smoother. He is bullish overall, but technology remains his favorite, thanks to a belief in the sector's continued growth prospects and ability to positively affect everything from productivity to profit margins. In our conversation with him, Applegate used history as a guide to put April's frightful market action in perspective, noting the market has had a habit of hitting a low and then rebounding in advance of the final Fed tightening. Recent action seems to fit that pattern, given that the Fed last tightened on May 16, while the 10-year bond hit its nadir on April 10 and the S&P 500 on April 14. But whereas a prior model exists for observing the relationship between financial markets and central bank cycles, the so-called New Economy is uncharted territory, he admits. Just a few years ago, for instance, it would have been difficult to imagine a company such as Razorfish (RAZF:Nasdaq - news - boards), or a business model along the lines of priceline.com's (PCLN:Nasdaq - news - boards), Applegate concedes. Similarly, new divisions such as fiber optics now account for a substantial portion of revenues at more-established tech companies, such as Cisco (CSCO:Nasdaq - news - boards). He may not know what technologies will emerge next, but Applegate is confident industry leaders will rapidly adapt to the changes, and that new bellwethers will emerge. Calling the latest business cycle "extraordinary," Applegate thinks we are in the same bull market that started in late 1990. Of course, there will be "risks and bumps" along the way, he says, but going forward 12 months, stocks should do better than other asset classes. Critics might charge that Applegate will playing the same old note, but those who've followed his advice in recent years have heard the sweet sound of the cash register ringing, over and over again. Participating in the chat were Aaron Task, Eileen Kinsella and Justin Lahart. Disclosure: Both Applegate's portfolios -- the U.S. Strategy Portfolio and the Virtual Economy Portfolio -- are also Lehman Brothers Asset Management products. In short, Lehman is long these stocks.