Printer Friendly

MERRILL LYNCH INVESTMENT STRATEGIST CHANGES ASSET RECOMMENDATION

    MERRILL LYNCH INVESTMENT STRATEGIST CHANGES ASSET RECOMMENDATION
    NEW YORK, Feb. 19 /PRNewswire/ -- Citing the rise in bond yields which has restored some attractiveness to bonds and increased their competitiveness with stocks over the intermediate term, Charles I. Clough, chief investment strategist for Merrill Lynch & Co., Inc., recommended a shift in asset allocation for Merrill Lynch financial consultants and clients yesterday.
    "We're moving 5 percent from stocks to bonds in both our benchmark and aggressive investment guideline recommendations," said Clough.  "Our benchmark investment guidelines are now 60 percent stocks, 35 percent bonds and 5 percent cash," he said, adding that, "our aggressive investment guidelines are now 60 percent stocks and 40 percent bonds.
    "Today, the bond market senses recovery and fears that a clash of private and public credit demands will drive rates higher," said Clough. "We believe those concerns are exaggerated and that powerful demographic forces and excess leverage will combine to create the weakest recovery of the postwar period.  He further commented that "our approach for bonds is to use bond market fears, when they push yields higher, as a chance to lock in precious yield.
    "This move in no way should be construed as negative for the longer term case for equities -- liquidity forces behind the recent surge in equities are powerful, and corporate earnings appears to be bottoming," stressed Clough, adding that "the silver lining of a credit contraction is that credit cannot be used speculatively."
      -0-           2/19/92
    /CONTACT:  Monica Prihoda of Merrill Lynch, 212-449-7293/
    (MER) CO:  Merrill Lynch & Co., Inc. ST:  New York IN:  FIN SU: SB -- NY068 -- 0563 02/19/92 15:28 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 19, 1992
Words:271
Previous Article:CAPITAL HOLDING BOARD OF DIRECTORS DECLARES DIVIDEND ON CONVERTIBLE PREFERRED STOCK
Next Article:HUNTINGTON BANCSHARES DECLARES QUARTERLY DIVIDEND
Topics:


Related Articles
Merrill Lynch Financial Advantage Service Provides Alternative to Commission and Fees
Merrill Lynch Introduces Asset Allocation Models and Portfolio Rebalancing Service For 401(k) Plans, Participants
Bladex Announces Addition of Mr. Tulio Vera to Asset Management Division.
Banc of America Securities-Merrill Lynch Research Hires Ethan Harris as Head of North America Economics and David Bianco as Head of U.S. Equity...
Banc of America Securities-Merrill Lynch Research Hires Ethan Harris as Head of North America Economics and David Bianco as Head of U.S. Equity...
Banc of America Securities-Merrill Lynch Research Adds Two Strategists to Global Commodities Team.
Banc of America Securities-Merrill Lynch Research Adds Two Strategists to Global Commodities Team.
Banc of America Securities-Merrill Lynch Research Hires William Bird as Senior U.S. Advertising, Marketing and Information Services Analyst.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters