How business, doctors and journalists prey on your food anxieties I
How business, doctors and journalists prey on your food anxieties I
How business, doctors and journalists prey on your food anxieties I
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UHaM E 1 U I U E q M<br />
INE FORBES/BARRA WAL! SiREE1 REVIEW<br />
"[nvestors fmallv realized that the<br />
Federal Reserve was looking at a<br />
str<strong>on</strong>ger U .S . ec<strong>on</strong>omy than Wall<br />
Street was, <str<strong>on</strong>g>and</str<strong>on</strong>g> that the Fed wouldn't<br />
be lowering interest rates again in the<br />
near future," claims Vattii7est Securitll's<br />
chief inN'estnlent strateglst, Peter<br />
Canelo . "Auto <str<strong>on</strong>g>and</str<strong>on</strong>g> retail sales are<br />
picking up again, so forget the soft<br />
[ec<strong>on</strong>omic] l<str<strong>on</strong>g>and</str<strong>on</strong>g>ing theory."<br />
Ho r about expected losers :<br />
Canclo thinks that tcchnology stocks,<br />
as a group, still have a ways to fall .<br />
After the dust settles <strong>on</strong> this sector,<br />
Canelo suggests that a few wellentrenched<br />
hardware companiessuch<br />
as Comoaq Computer, Hewlett-<br />
Packard, Motorola <str<strong>on</strong>g>and</str<strong>on</strong>g> Cisco<br />
Systems-could be good buys . For<br />
now. he thinks the safest bet is with<br />
retail stocks such as Nordstrom, Dillard<br />
Department Stores <str<strong>on</strong>g>and</str<strong>on</strong>g> ao1av<br />
Department Stores .<br />
Sp eci81 fop15<br />
SVhile the whole market looks overralued<br />
bv most earnings measures, these<br />
eight companir_s-all of which have<br />
gained at least 50% in stock price since<br />
the start oP' the vear-look particularlv<br />
expensive . Each stock belox.sells for<br />
more than 50 times estimated 1996<br />
earnings-<str<strong>on</strong>g>and</str<strong>on</strong>g> forecasts that fac out<br />
otten prove to be overiv, optimisec .<br />
TIe orerall market<br />
3400<br />
3000<br />
2600<br />
22C0<br />
1800<br />
1400<br />
a5o0<br />
Performance Prica ToVl return<br />
last4nreks 7 .7% ~ .8%<br />
Since i2/31/94 19 .7 21 . :<br />
'85 '86 '87 '88 '89 '90 '9' '92 '93 '94 '95<br />
Closeup <strong>on</strong> the market<br />
Index orinvestment<br />
Barra AII-US Index<br />
S&PBarra Growth index'<br />
S&P/Barra Value index=<br />
Bowlenes industrials<br />
S&P 500<br />
NYSE<br />
Nasdap<br />
Amex<br />
EAFE'<br />
CRB futures index '<br />
6ald`ICemesspot)<br />
Y