Interesting excerpts from investment newsletters:

"We believe that the market is approaching a new era of growth in which the focus will be on small, innovative and rapidly growing companies, accompanied by low interest rates and low inflation. Whether this scenario can unfold before a major correction occurs is a significant concern to us, and we continue to advise investors to be prepared for such a pullback by keeping a higher-than-usual amount of cash available and setting stop/loss prices for more speculative holdings."

-- Richard Geist,

Strategic Investing,

Waban, Mass.

"Interest-rate jitters may crimp the market in the short term. However, with the Dow utilities posting all-time highs and the market's primary trend bullish under the Dow Theory, investors should maintain a positive stance toward stocks and look for buying opportunities on further declines."

-- Dow Theory Forecasts,

Hammond, Ind.

"We believe the Internet craze has now ended. The fun is only beginning in being short or owning puts on these stocks."

-- David Tice,

Strategic Investment,


"The stock market crash of 1987 knocked the stuffing out of most U.S. real estate, which took years to recover. With the prospect of a deep market decline somewhere ahead and evaporation of the wealth effect, the decline in real estate prices could be acute. You should arrange your affairs accordingly."

-- Charles Allmon,

Growth Stock Outlook,

Chevy Chase

"Usually, the financial sector is a consistently above-average performer in the early stages of a new bull market cycle, and therefore its recent mediocre advance raises questions about the durability of the major uptrend which has emerged from last fall's low. Of course, it is also unusual to have interest rates rising, as has been the case recently, in the early stages of a new bull market, and this condition likely has something to do with the poor performance of the financials."

-- Richard T. McCabe,

Market Analysis Comment,

Merrill Lynch & Co.,

New York

"Right now, all the stock market is doing is worrying about deteriorating economic growth, resurgent inflation and rising interest rates. However, the smoke will soon start to clear when earnings 'pre-announcement' season arrives. . . . Those stocks that benefit from positive analysts' earnings estimate revisions will likely rally in anticipation of strong second quarter earnings results that will start being released in July. In this uncertain stock market environment, an investor's best defense remains a strong offense of fundamentally superior stocks."

-- Louis Navellier,

MPT Review,

Reno, Nev.