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Two historically reliable fundamental indicators support a bullish case for stocks, says The Daily Trader (110 Boggs Lane, Cincinnati, OH 45246). "First, the ratio of Treasury bill yields to stock yields has dropped sharply in the past year. Second, earnings reports, which were awaited with widespread fear and loathing, are showing almost as many positive as negative surprises. We don't believe we're heading into a recession, but coming out of one. This is a potentially historic buying opportunity."

- "When others get anguished, I just buy." That's how Penelope Dob-kin explains her success in running Fidelity Europe Fund, which has easily outperformed the market averages since its inception in 1986. Dobkin is no common contrarian, though. She follows earnings trends closely and prefers buying sectors to countries. Right now she's very bullish on companies that can fulfill Europe's rising energy demands. Favorite issues: Unilever , Nestle, Nationale Elf Aquitaine, Generale D'Electricite, Grand Metropolitan, Christiana Bank Kreditkassen.- Paper and forest-products stocks are as attractive now as they were in mid-1986, mid-1983, mid-1975 and late 1972, says Piper, Jaf-fray and Hopwood in Minneapolis. "Each of these instances was a great buying opportunity that took place within six months of a cyclical earnings trough like we are experiencing now. On a long-term basis, the group is very cheap." Among P.J.H.'s favorite paper stocks: Federal Paper Board, Mead Corp., Scott Paper, Temple-Inland, Union Camp.

- In uncertain economic times it's always wise to concentrate on financially strong stocks that can not only maintain their dividends, but also actually raise them, says Smith Bar-ney's Marshall Acuff. "Hard times give you a chance to buy great companies that represent better value than they have in the past." Acuff's favorites: Bristol-Myers-Squibb, Deere, IBM, Pacific Telesis, West-vaco.

- "Sugar prices have quietly drifted lower, to what I consider bargain-hunting territory," says commodity expert Eric Kirzner, writing in The Hume Moneyletter (835 Franklin Court, Marietta, GA 30067). "Sugar supplies are also exceptionally tight, at their lowest level in 10 years. And consumption is expanding rapidly in developing countries. With reserves at a historically low point, prices are well-supported at current levels and any crop problems could have a dramatic upward effect."

- "We're so bullish on the German mark that we've got 30 percent of our portfolio invested in it," proclaims Adrian Day's Investment Analyst (P.O. Box 6644, Annapolis, MD 21401). "Germany has the strongest economy in the world. It has the largest accumulated capital surplus in the world. It also has one of the lowest inflation rates - 1.5 percent. The German economy is strong enough to withstand the costs of unification. And we believe the markets have already discounted it anyway."

- While all 10 of the top market timing newsletters beat the return on Treasury bills during the '80s, only four beat the general market as represented by the Wilshire 5000 Cap-Weighted Total Return Index, says The Hulbert Financial Digest (316 Commerce St., Alexandria, VA 22314). The timely timers: Bob Nurock's Advisory-Technical Market Index (up 485. 0 percent for 10 years); Telephone Switch Newsletter-Equity/Cash Timing Model (up 382.0 percent); Elliott Wave Theorist-Investors (up 379.4 percent); Market Logic (up 379.3 percent).

Investor's Notebook reflects the opinions of professionals. It does not endorse specific investments, and no endorsement is implied or should be inferred. For more information, contact the individual firms cited.