Interesting excerpts from investment newsletters:

"If interest rates should begin to climb, look for the New York Stock Exchange advance/decline line to take a real nosedive. This, in turn, will scare the daylights out of investors, mutual funds, and the Wall Street crowd. The reason will be obvious. Today, the NYSE is heavily skewed by numerous closed-end bond funds, preferred stocks and other vehicles influenced by interest rates. . . . If you think the market had jitters in 2002, wait until declines begin to dominate the Big Board for months on end."

-- Charles Allmon,

Growth Stock Outlook,

Chevy Chase

"Our methodology shows the market continues to look moderately attractive from a fundamental perspective, and dividend yields are higher than cash [i.e., three-month Treasury bill] yields for the first time since 1993. The move to eliminate or reduce the double taxation of dividends appears to be growing in Congress, and any move to increase dividend payouts could enhance the market's attractiveness. Companies that have low payout ratios and strong cash flows should benefit, as could select stocks from high-dividend sectors such as financials, consumer staples and telecommunication services."

-- Clark Winter,

The View, Citigroup,

New York

"The small caps are positioning themselves to be the next major breakout group. If and when that happens, we would expect to see a significant increase in market volume, which would help to keep the upward momentum going."

-- Ron Rowland,

All Star Fund Trader,

Austin

"The third year of a presidential term has been positive for stocks each time it has occurred in the last 60 years, with an average gain of around 20 percent. I'm not predicting double-digit gains for stocks in 2003, but after the past three years I will welcome gains in the 8 percent range. . . . I continue to recommend beaten-down leaders like Pfizer (PFE), Merck (MRK), Washington Mutual (WM), BB&T (BBT), Regions Financial (RF), Target Corp. (TGT), CVS (CVS), along with Paychex (PAYX), Holly Corp. (HOC), General Dynamics (GD) and First Data (FDC)."

-- The Tweed Report,

Roger M. Tweed,

McLean