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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (10936)	12/19/1997 8:24:00 AM
From: Moonray	Read Replies (2) \| Respond to of 22053

How some see it: "With the good inflation outlook, a yield of 5.5 percent to 6 percent on the 30-year bond is certainly feasible in early 1998," said Carl B. Weinberg, chief economist at High Frequency Economics. "The fundamentals of the U.S. are just great. Until we see higher inflation in the pipeline, we're not going to worry about bond yields rising." "We'll do 10,000 on the Dow, maybe in 1999," said Ralph Acampora, the influential head of technical research at Prudential Securities. "But right now, I see too much deterioration in industry groups. At best, from here, I see the market moving up 10 percent. At worst, however, the downside might be as much as 20 percent, with the Dow possibly falling to as low as 6000 or 6300 in 1998. So, for the first time in three years, I'm entering a new year with the risk-reward parameters two-to-one against us." "There are a couple of signals coming from the stock market which are very clear," said Hugh Johnson, chief investment strategist at First Albany Corp. "The market is becoming very defensive, which means investors expect the economy and earnings to slow as we move into 1998. "The market is also becoming very Asia-evasive," said Johnson. "Generally, there has been a shift from money-center banks to regional banks. There's also been a shift out of technology, particularly computer and semiconductor stocks which have significant exposure to Asia. And there's been a move out of industrial issues like Caterpillar as investors have made their portfolios Asia-proof. "This tells me that the smart money says there are more earnings-related shocks to come," Johnson concluded. o~~~ O