To: Paul J. Sharga who wrote (827 ) 11/13/1998 5:46:00 PM From: Richard L. Williams Read Replies (2) | Respond to of 1781
Hi, everybody....I picked this up on another thread, thought it made for good reading. A person I work with saw somebody on CNBC mention HeartSoft by name as a "favorite" for 1999, not sure if it was this lady or not. We are looking into it. >> Thursday November 12 8:22 AM ET Strategist Garzarelli bullish on small-caps Garzarelli Capital's Elaine Garzarelli, the equity strategist best known for anticipating the 1987 stock market crash, is still bullish on stocks. Appearing on CNBC Wednesday afternoon, she gave small-cap investors special reason to pay attention. And she predicted that the Federal Reserve will continue to cut key interest rates. While she has an aggressive outlook for the market overall, Garzarelli is particularly keen on small-caps. She says shares of these companies (which have market capitalizations between $250 million and $1 billion) are slated to outperform the rest of the market. These stocks are beginning a new cycle, she said. They peaked in April and bottomed out on Oct. 6, after a 35-40 percent decline. Now, Garzarelli said, her research shows that the stocks are poised for a "rocketship move." Her bullish outlook extends to blue chips and small-caps across a wide range of industries. Certain sectors are particularly ready for growth: brokerage firms (especially Merrill Lynch), hotels (like Hilton), homebuilders and banks (such as Chase and BankBoston). In part, actions by the Federal Reserve are responsible for this optimistic outlook. The Fed's October interest rate cut is widely credited with helping the market rebound after a summer slump. Garzarelli said she expects the central bank to cut interest rates even more. But if the immediate market volatility continues, she said, the Fed may hold off taking any action at its meeting next week. It will simply wait another month or two and trim rates as soon as the market calms down, she said. Fed action and low interest rates are part of the formula for an extended bull market. "So as long as inflation stays okay, it's good for interest rates and good for the markets," Garzarelli said. << Volume is picking up for our little stock...not sure how many people saw the article that my friend did, but apparently, some did. MM's can't hold us back forever! Cheers! Rick