The 1999 B.E. GUIDE TO INVESTING.Will the Dow pass the 12,000 mark? Which country will present us with the next offshore economic crisis? Will the Net stock bubble finally burst? Will the bear begin to claw at the market? These questions have consumed investors as they've watched the gyrations on Wall Street. The market continues to be an erratic one--enough to merit Federal Reserve Chairman Alan Greenspan's presence before the House Ways and Means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. Committee in late January to give another version of his "irrational exuberance Irrational Exuberance An infamous phrase uttered by Alan Greenspan in 1996 to describe the overvalued market at the time. Notes: Although every word spoken by Mr. " speech. However, investors no longer view 150-point stock movements, up or down, as nail-biting events. Devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the Brazilian currency can cause the market to drop one week and surprisingly strong corporate earnings can cause it to skyrocket sky·rock·et n. A firework that ascends high into the air where it explodes in a brilliant cascade of flares and starlike sparks. intr. & tr.v. the next. Depending on the activity, this environment presents individuals and institutions with either an opportunity to buy shares on market weakness or take profits. Moreover, money continues to flow into mutual funds and 401(k) plans at an unbelievable clip. And investors have decided to risk their dollars on the shares of hot Net companies as stock splits make such investments more affordable. "We're at a point in which we have a whole generation of investors who don't remember a prolonged bear market," asserts Lou Holland, managing partner of Chicago-based Holland Capital Management and a member of the B.E. Investment Roundtable. "Having been in the business for 30 years, I figured out that slow and steady usually wins the race." Instead of timing the market, develop a long-term agenda. If you do so, you'll be able to find a safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. during a choppy market Choppy Market A stock market condition whereby prices swing up and down considerably but with no resulting overall price movement in either direction. Notes: The term is derived from the phrase choppy seas, where a boat will move a lot but not over any large distance as or, better yet, prime stocks that aren't overvalued Overvalued A stock whose current price is not justified by the earnings outlook or price/earnings (P/E) ratio and thus, expected to drop in price. Overvaluation may result from an emotional buying spurt, which inflates the market price of the stock or from a deterioration in a . That's why we present to you, our readers, the annual investing guide. On the pages that follow, we'll have our panel of prognosticators provide you with their picks and pans. Then, we unveil this year's top mutual funds, including BE's exclusive listing of black mutual funds and the leading fund families. Throughout this guide, we provide you with alternatives that will help you shape and meet your investment goals. Read on. |
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