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To: Oblomov who wrote (152107)	2/19/2002 12:08:22 PM
From: Petrol	Respond to of 436258

SSB's Levkovich turns bullish By Julie Rannazzisi Tobias Levkovich, Salomon Smith Barney's chief U.S. equity institutional strategist, has turned bullish on stocks. In a note entitled "The stars are beginning to line up -- go long!" the strategist has unveiled a bullish stance on equities after almost three months of being generally neutral. He believes business trends are about to improve and support macroeconomic forecasts for recovery. Levkovich stressed that valuation won't be the trigger as earnings visibility is more critical. He notes that upward revisions have indeed turned much more positive. Levkovich noted that gains in the equity market have been restrained by a lack of confirmation on a company level of a turnaround in fundamentals. But he claims a turn will be "imminent" and "provide investors with the needed visibility for renewed equity appreciation potential." As production begins to climb, gains in manufacturing employment should ensue -- inciting a rebound in the stock market and keeping the consumer resilient. The Salomon strategist also told clients that widespread fears generated by the Enron scandal should taper off. He said a market retest of the September 2001 low isn't needed since it was triggered by the aberrational nature of the Sept. 11 terrorist attacks. Levkovich maintains a year-end S&P 500 ($SPX: news, chart, profile) target of 1,300 to 1,350, which corresponds to a 15 to 20 percent upside from current levels. The strategist made numerous sector weight shifts: he raised his weighting on the industrials sector from a "market weight" to an "overweight;" his weight on information technology was upped from a "slight underweight" to a "market weight" on the wings of turning trends in the broad chip and chip equipment industries while remaining cautious on telecom equipment and Internet infrastructure stocks; and consumer staples were lowered from a "market weight" posture to a "slight underweight." He recognizes that risks arise from the potential of an energy shock given current tensions in the Middle East but feels that investors will be rewarded by buying now. "We contend that if someone handed us the ball at the line of scrimmage, we could tell our receivers to go long," the strategist concluded. cbs.marketwatch.com.