How business, doctors and journalists prey on your food anxieties I

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