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Personal Business: INVESTING
TABLE: What's Ahead for Stocks
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
DATA: MORGAN STANLEY, SALOMON BROTHERS, PRUDENTIAL SECURITIES