BUSINESSWEEK ONLINE : JUNE 26, 2000 ISSUE
COVER STORY
FOR THE RECORD
A. Marshall Acuff Jr.
A. Marshall Acuff Jr.
Salomon Smith Barney
A. Marshall Acuff Jr., U.S. investment strategist at Salomon Smith Barney, has scrutinized down markets for 30 years. Here's how he sees defensive stocks:

ON A DEFENSIVE POSTURE
The stock market is likely to continue to be volatile and rotational over the next several months. Investors are buying non-tech growth stocks to diversify risk.

ON WHAT TO WATCH FOR:
In the next six months, it's U.S. interest rates. If they are peaking, then we should see strong Asian markets in the next year.

ON GOOD BUYS
Look for high-quality companies that are improving quarterly earnings. A company should be able to sustain profits if economic growth moderates.

ON FAVORITE SECTORS
Energy and military contractors top my list. As long as crude oil stays above $16 a barrel, energy producers have an incentive to keep drilling for new supply. And U.S. defense spending has turned up after a 13-year hiatus.

ON WHAT TO AVOID
Drug stocks have already had a big move, and there's a lot of uncertainty about whether politicians will push for price controls.

"The best defense is a good offense"


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RELATED ITEMS
Choosing Safe Stocks in Turbulent Times

TABLE: Best Defensive Plays

For the Record: A. Marshall Acuff Jr.

ONLINE ORIGINAL: Searching for Safety among Consumer Staples

Mid Year Investment Guide
Introduction
Economic Outlook
Washington Outlook
Asset Allocation
The Stock Market
Tech Stocks
Defensive Investing
Stocks to Avoid
European Equities
Asian Stocks
Latin American Stocks
Bonds
Commentary
Mutual Funds
Tax Tips


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