Personal Business: INVESTING

TABLE: What's Ahead for Stocks

SECTOR OUTLOOK

BASIC INDUSTRY-COMMODITY If the economy reaccelerates and inflation

Oil, steel, paper fears return, this sector should take off.

Chemical and paper exports are rising.

CONSUMER CYCLICALS Many stocks are cheap and have good long-term

Autos, retail, lodging, prospects. Hotels should benefit from an

restaurants increase in foreign tourism due to the weak

dollar. But remember, this group is tied to

the U.S. economy.

INTEREST-RATE SENSITIVE These stocks began to plummet as soon as the

Utilities, banks, brokerages Fed started raising rates. But rates are

stabilizing, and some companies are good buys.

CONSUMER NONCYCLICALS Many are leading the market now.

Food, soft drinks, Multinationals are profiting from the falling

tobacco, drugs dollar. Plus, U.S. consumers buy these

products even if the economy slows. Share

prices are lofty, however.

TECHNOLOGY Many tech companies are global players.

Computers, electronics, Semiconductor and computer stocks have been

semiconductors booming, and the market could punish them

severely if earnings fall short of

expectations.

DATA: MORGAN STANLEY, SALOMON BROTHERS, PRUDENTIAL SECURITIES