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June/July 1995
The market is responding to a slowdown generated by an excess of FED interest rate hikes.
Inflation muted and now the FED will have to lower rates a notch or two to avoid a recession — still aiming the economy towards that HOLY GRAIL - “the Soft Landing.”
For now (next three months), we foresee a continued firm upside bias but increased volatility. Hoping for minor correction and see rotation out high priced tech stocks; i.e., Micron Technologies and Iomega. Anticipate secondaries to outpace S&P 500
At present remain fully invested and monitor an extremely diverse portfolio of domestic as well as international investments. Our primary objectives are avoiding market favorites and concentrating on obscure, out-of-favor, turnarounds and discounted value!
1. Lower interest rates 2. Shortage of stocks 3. Foreign participation 4. U.S. Dollar begins rebound 5. Shorts running for the hills (can’t afford the beach due to being burned so badly). We play where many don’t or won’t.
1. Data 1, Inc. - DMEM 2. Walbro Corp. - WALB 3. Quantum Corp. - QNTM
Yours truly, William Velmer, Editor
S.A. ADVISORY 2274 Arbor Lane #3 • Salt Lake City, UT 84117 • (801) 272-4761