| BUSINESSWEEK ONLINE : JUNE 14, 1999 ISSUE | ||||||||
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| COVER STORY
For the Record: Elizabeth Mackay Elizabeth Mackay, chief investment strategist at Bear Stearns, has worked on Wall Street for 19 years. Here's how she sees the market environment. ON CYCLICAL STOCKS We could see the cyclicals play out for a further six to nine months. Globally, it has been the deflationary and recessionary pressures that have been keeping these stocks out of favor. As these pressures ease, we'll see some of the biggest rebounds there. ON INTEREST RATES Rates will most likely stay where they are for a while. There's a good chance that the 30-year Treasury bond has peaked at the 6% level. In terms of equities, there will be nothing punitive about the interest-rate environment, but multiples are not going to expand further. ON EARNINGS The market has been dominated by just a handful of stocks in the past year. But now, I think we're going to see upside earnings surprises across the board. I like Carnival Cruise Lines and Gillette. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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 RELATED ITEMS Stocks: Don't Even Think about Cashing Out TABLE: Stocking Up On Value For the Record: Elizabeth Mackay INTERACT E-Mail to Business Week Online | |||
