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To: im a survivor who wrote (5361)	1/8/2002 6:48:46 PM
From: stockman_scott	Read Replies (1) \| Respond to of 13815

SalamonSmithBarney's Top Picks for 2002 salomonsmithbarney.com <<...A Closer Look at Investor Sentiment In the most basic sense, two things are necessary for a market to rise: money and reasons to invest it. The money has been there for some time. Throughout 2001, the Federal Reserve cut rates, which are now at a level that, historically, has been low enough to restart the economy. What has been absent is a reason to invest. The seeming endless stream of downward revisions to earnings estimates has fueled selling and made the diminishing (but still positive) returns on cash seem attractive. This has been a frustrating experience. However, once expectations have bottomed and begin to recover, those diminished cash returns could seem quite inadequate. Market and sector valuations may seem to be impediments, but rising expecta-tions can push valuation concerns to the back burner and keep them there for some time. It has been our experience that valuation extremes (either good or bad) only become a major problem once the factors that created them go away. We believe investors should invest in cyclically affected groups and sectors for the year ahead. As mentioned before, we believe expectations and confidence have declined by near-record amounts. While a rebound (or recovery) has apparently begun, the numbers still appear to us to be quite low. However, the earnings revisions picture appears to be improving on both the macro and micro levels...>>