BULL'S CHARGE TOO FAST?; ANALYSTS WORRY THAT STREAKING STOCKS COULD LEAD TO INFLATION, INTEREST-RATE RISE.Byline: Deborah Stern Bloomberg News Money poured into U.S. stocks in the first week of 1999, even as analysts warned that stocks may be rising too fast and that a revival of inflation later this year could drive up interest rates, threatening a bull market now into its ninth year. The Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. closed above 9,600 for the first time Friday, approaching the year-end targets of some of Wall Street's top strategists, as money streamed into retirement accounts and mutual funds. For the week, the average rose 5 percent. If that pace continued through year-end, the Dow would gain 839 percent. ``The amount of pessimism in the market has largely disappeared,'' said Timothy Ghriskey, senior portfolio manager of Dreyfus Corp., which oversees $120 billion. ``People are more scared of being left behind, so the money gets thrown into the market.'' Even strategists who raised some concerns weren't bearish on the overall market. Goldman, Sachs & Co.'s Abby Joseph Cohen Abby Joseph Cohen (CFA) (born 1952 in Queens, New York) is an American economist and financial analyst on Wall Street. She is a partner and chief U.S. investment strategist at Goldman Sachs. , one of Wall Street's most bullish strategists, this week said stocks may have risen too fast and advised clients to trim their shareholdings. Yet she also said the current calm state of interest rates should let the economy grow, giving stocks room to rise. Byron Wien, Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter Dean Witter may refer to:
So far, investors aren't too concerned. ``What is driving this market is a pure fire hose of liquidity,'' said James Griffin
James Donald Griffin , a market strategist Noun 1. market strategist - someone skilled in planning marketing campaigns strategian, strategist - an expert in strategy (especially in warfare) at Aeltus Investment Management, which oversees $48 billion. Monetary policies aimed at fixing Russia and Asia's financial woes are spurring ``a huge ocean of money for the market, and the potential for that money to keep coming in is very strong.'' In the first five days of 1999, the Dow average rose to a record 9,643.32. The Standard & Poor's 500 Index closed the week at a record 1,275.09, up 3.7 percent. The Nasdaq Composite Index Nasdaq Composite Index An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed soared 6.9 percent to a record 2,344.41; if it kept rising at that pace, it would gain 2,016 percent for the year. The Russell 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. of smaller stocks rose 2.2 percent to 431.23, still 12 percent below its April 21 high. The broadest measure of the market, the Wilshire 5000 Index, which includes all U.S.-based companies, rose 3.4 percent to a record 11,702.09. |
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