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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: hpeace who wrote (25516)	12/17/1997 4:28:00 PM
From: Boplicity	Read Replies (3) \| Respond to of 176387

NEW YORK -(Dow Jones)- The chief market analyst at Merrill Lynch & Co. says investors should brace for a possible severe correction in the U.S. stock market next year. Merrill Lynch analyst Richard McCabe said the market could be vulnerable to a cyclical decline in 1998, which could bring the major averages down as much as 25%. A correction of that magnitude would pull the Dow Jones Industrial Average, now around 8,000, down to around 6,000. The correction, however, will lay the groundwork for the next cyclical bull market, which should start in late 1998 or early 1999. McCabe spoke at a press conference at which Merrill Lynch analysts provided their 1998 economic and investment forecasts. McCabe said that before the onset of the correction, U.S. equity markets will likely reach new highs either in the final weeks of this year or early next year, as stocks near the end of a four-year cyclical bull run. McCabe referred to the turbulence in Asian markets and the October sell-off in domestic markets as a "warning crack" that the current bull market is nearing its end. "It's a wakeup call," he said. "Markets are like trees. They don't grow to the sky." In its published forecast for next year, Merrill said the global investment scene next year will be dominated by low inflation, declining interest rates and slower growth. "Asian growth is about to slow sharply and the Asian crises will ultimately slow the entire world economy," Merrill said. "For investors, the key will be to find sources of growth in a slowing economy." The brokerage firm said restructurings and consolidations will prove to be major sources of earnings growth for most companies. Industries in the throes of consolidation include: airlines, financials, selected energy, capital goods and CATV companies,it said. In the U.S., GDP growth is expected to slow to about 2.5% during 1998 after jumping nearly 4% during 1997, Merrill predicted. "The Asian crises should reduce U.S. growth by about half a percentage point next year, or more," it said. "The transmission mechanism is the U.S. trade balance, which will deteriorate sharply as exports slow." Asia accounts for nearly 30% of U.S. exports. Merrill said it is recommending higher quality stocks and bonds for investors around the world and believes that the two areas in the world that can accept foreign investment and grow are Eastern Europe and Latin America. In the U.S., financials and other bond substitutes like real estate investment trusts are favored, as well, it said. Merrill's chief economist, Bruce Steinberg, said the U.S. economy was beginning to moderate even before the Asian crises could affect growth. "In particular, consumer spending appears much softer in the fourth quarter than earlier this year," he said. Steinberg expects the slowdown in spending next year will be concentrated in consumer durables, particularly vehicle buying, where pricing is likely to weaken. Steinberg believes the U.S. inflation rate will continue to ease next year, with the Consumer Price Index rising less than 2% and prices for consumer goods declining. Steinberg's inflation view is predicated on economic growth moderating, capacity expansion accelerating, and import prices declining. He believes that the Fed will probably ease next year and bond yields could fall as low as 5.5%, from their current level just under 6%. Its good you buy puts steve, they will come in handy. Greg---> McCabe close to hankys name hummm. <<1998 or early 1999.>> Yep that is what I have said. see this post to hanky 207.183.153.206 We will see.

To: hpeace who wrote (25516)	12/17/1997 4:31:00 PM
From: Venkie	Read Replies (3) \| Respond to of 176387

Boo........ You are pretty cool..... We had Pain & Webber in here today..They are taking over our our profit sharing funds at our company... They said that now is a time to buy esp the international fund part of they're service. I ask is Dell was still a good buy and he said yes but cpq was a better ...Amat was a steal.....He says the asian problems will turn around soon and those who arent afraid to buy will reap the benifits.. He hooked us up with American Funds....