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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (8449)	10/29/1997 10:11:00 PM
From: Joan Osland Graffius	Read Replies (3) \| Respond to of 94695

Hi Mark, I have been listening to the investment experts at Merrill Lynch tonight. They believe there has been a crack in the market and that we should be selling any stocks that have had problems like disappointments in earning over the long haul, etc. i.e. any stock that has not had a long sustained chart in the northern direction. They believe that this is classic crack in a bull market..i.e. a warning and a rebound. They recommend we get rid of these stocks right now. They think this market will trend lower for a couple of months and we should be figuring out what we want to buy and use the lows in these stocks from yesterday as an entry point. Sectors to stay away from are commodity stocks and capital equipment stocks. They believe the long bond could go below the fed funds rate during the next 3 to 6 months and recommend a purchase. BTW, their current portfolio is 50% in long bonds. The stocks to looks at are interest-rate sensitive stocks which should respond positively like regional banks. In addition, they recommend cable TV, computer software, insurers, national gas pipelines, natural gas producers, and REIT's. Utilities also may benefit from a "rush to quality" like the Regional bells. They also think oil drillers and satellite communications companies and retailers should be considered. The emphases was in stocks you purchase now be high quality, high quality, high quality.....get the idea. Joan