Experts reveal...
How To
Invest
$10,000 In 2000
by Andrew Leckey
How
would you invest $10,000 in the coming year?
Each year, I pose that question
to a diverse group of investment pundits. This year, with millennium
anticipation at fever pitch, I also asked for personal recommendations
on the best long-term investment for the new century.
Based on responses, computer networking
firm Cisco Systems and stock index funds based on the Nasdaq
100 are among the favorite investments as we carom into tomorrow.
Here is the advice derived from
the year 2000 crystal ball:
Peter
Canelo, U.S. investment strategist for Morgan Stanley Dean
Witter.
"Invest $7,000 in equities,
$2,000 in bonds and $1,000 in cash. Equities would emphasize
technology, retailing, banks and energy. Specific names include
Intel, Circuit City Group, Wells Fargo, Alcoa and Schlumberger.
The bonds would be 10 years in duration. Best investment play
for the future will be technology, since pent-up demand was suppressed
by Y2K concerns. My favorite stock long-term is Cisco Systems.
Arnold
Kaufman, editor of The Outlook, Standard & Poor's
investment advisory newsletter in New York.
"Place $6,500 in equities;
$3,000 in Treasury, municipal and corporate bonds; and the remainder
in cash. One-fourth of equities should be in technology and communications.
I like big-cap leaders Cisco Systems, Microsoft, Intel and MCI
WorldCom. If the investor prefers a fund instead, I'd select
the Nasdaq 100 Index Trust. Some non-tech stock names are Johnson
& Johnson, Chase Manhattan, Freddie Mac and Texaco. Best
investment for the new century is Cisco Systems."
Marshall
Acuff, investment strategist with Salomon Smith Barney.
"Put the entire $10,000 to
work in equities, specifically Amgen, Honeywell International,
BMC Software, Electronic Data Systems and MCI WorldCom. I envision
volatility, but one should do well by focusing on equities with
promising earnings growth prospects. My one stock for the new
century would be Amgen because its flow of new products for the
next five years is stronger than any other pharmaceutical company,
yet its price is reasonable."
Louis
Navellier, editor of the MPT Review investment newsletter
in Reno, NV.
I'd invest $3,000 in large growth
stocks, $4,000 in mid-cap growth sktocks and $3,000 in small-cap
growth stocks. I like Texas Instruments, Emulex, Harmonic, Andrx
and Applied Micro Circuits. For the coming century, I'd choose
stock of a company that dominates its business, yet doesn't get
into trouble with the Justice Department. That's either Qualcomm,
whose technology dominates digital cell phones, or Cisco Systems."
John
Ryding, senior economist with Bear Stearns & Co.
"The money would go into the
stock of Cisco Systems, Sun Microsystems, IBM and America Online.
I see 4 percent U.S. economic growth for next year, with an inflation
rate of 1 percent. If I had to pick one investment for the century,
it would be the Nasdaq 100 Index Trust. Over the long haul, equities
are the best asset to be invested in. The greatest danger in
equities is being out of the market on the days when it goes
up a lot."
Diane
Swank, chief economist for Bank One in Chicago.
"All $10,000 would be invested
in economies abroad through mutual funds with lots of foreign
exposure. I'd put heavy emphasis on Asia and Latin America in
those funds. We're unwinding from a global financial market crisis,
which means opportunities abroad are improving and companies
with heavy exposure abroad are improving. Heading into the new
century, equities are a better bet than bonds. The market will
broaden, making small-cap stocks interesting."
Russell
Kinnel, mutual fund editor with the Morningstar Mutual Funds
investment advisory in Chicago.
"I'd put $4,000 into Vanguard
Index 500 Fund, $2,500 into Fidelity Diversified International
Fund, $1,5000 into Third Avenue Value Fund and $2,000 into MAS
Mid Cap Growth Fund. Of course, any time you're investing in
mutual funds, it should be for the long-term. If I had one fund
to stick with for the new century, it would be Vanguard Capital
Opportunity Fund, which recently raised its minimum initial investment
to $25,000."
Roy
Diliberto, incoming president of the Financial Planning Association
and president of RTD Financial Advisors Inc. in Philadelphia.
"For an aggressive portfolio
seeking growth, put $5,000 in large company domestic stock funds,
$2,000 in a small company domestic stock fund, $2,000 in a European
stock index fund and $1,000 in an Asian stock index fund. In
the long run, stocks have always and will always outperform other
asset classes. I'd own a little bit of everything and let it
all work itself out."
Edward
Foster, chief investment strategist with Fabian Investment
Resources, publisher of the Fabian Premium Investment Resource
Newsletter in Huntington Beach, CA.
"Invest $10,000 in the Rydex
Series Trust OTC Fund, which invests in the Nasdaq 100 composite,
because the technology rally could continue into the year 2000.
However, if it doesn't, I also want to have the safety net of
a 10 percent stops loss order (which sets the sell price below
the current market price). Long-term, I'd also choose the Rydex
Series Trust OTC Fund because the next century is going to see
growth in the Internet, health-care and technology sectors."
© 2000
