For the Record: Mary Farrell
|
Mary Farrell
Paine Webber |
Senior investment strategist Mary Farrell of PaineWebber is the author of the recent investing book Mary Farrells Beyond the Basics...
ON TECHNOLOGY STOCKS
The tech arena is definitely the one place to be. We're not going back to the Old Economy. But I think its crucially important to own tech stocks that have earnings. It may be a new economy, but we havent repealed the old laws of valuation.
ON THE ECONOMY
The economy will continue expanding. We now have more muted business cycles that get much more extended. Indeed, we've had only one recession since 1981, and it was very mild by post-WWII standards, so there's no reason to think that this expansion can't continue. Still, I do think it's a maturing expansion that's showing signs of slowing.
ON GROWTH VS. VALUE INVESTING
I would argue that the best value in the market remains growth. Yes, there are many cheap stocks, particularly Old Economy stocks. But I would rather pay a premium for growth than own a stock just because it's cheap.
ON INTEREST RATES
The chances of another interest-rate hike have been reduced significantly by the most recent economic reports, which really are confirming that this is a slowing economy.
| 
