"We recently studied the relationship between new stock offerings and stock prices since 1960," reports The Zweig Forecast (P.O. Box 360, Bellmore, N.Y. 11710). "When new issues numbered 55 or less per month, the S&P 500 gained 10.6 percent annually. When offerings averaged 56 or more per month, the S&P 500 fell 2.6 percent annually. We were recently at three times that danger level. The ice for the stock market is getting thin."
- Guardian Park Avenue Fund uses pure mathematics to pick its stocks. Its quantitative model employs 12 different variables to measure growth, value, momentum and a wide variety of miscellaneous factors such as market psychology to "take the group thinking out of decision-making." Apparently it works. GPA has returned 20.1 percent annually to its investors over the past three years. Recent favorite stocks: RJR Nabisco, Dean Witter Discover, Applebee's International, Federated Department Stores, General Electric, Merrill Lynch, Computer Associates International.- "A rebound in the housing industry is good news for companies that make furniture, carpeting and appliances," notes Forbes. "Such stocks tend to trail the housing market by six months. Here are six home-furnishing stocks which have modest debt levels and trade for no more than 16 times 1994 estimated earnings: Bassett Furniture, Chromcraft Revington, Flexsteel Industries, Ladd Furniture, National Presto Industries, Pulaski Furniture."
- "The U.S. economy should continue on a moderate growth track throughout 1994 with much of the expansion in capital equipment spending and some in consumer spending," predicts Marshall Acuff, chief portfolio strategist for Smith Barney Shearson.