Table: What's Ahead For Stocks

SECTOR                          OUTLOOK
      
      BASIC INDUSTRY-COMMODITY        If the economy reaccelerates and inflation 
      Oil, steel, paper               fears return, this sector should take off. 
                                      Chemical and paper exports are rising.
      CONSUMER CYCLICALS              Many stocks are cheap and have good long-term 
      Autos, retail, lodging,         prospects. Hotels should benefit from an 
      restaurants                     increase in foreign tourism due to the weak
                                      dollar. But remember, this group is tied to 
                                      the U.S. economy.
      INTEREST-RATE SENSITIVE         These stocks began to plummet as soon as the 
      Utilities, banks, brokerages    Fed started raising rates. But rates are 
                                      stabilizing, and some companies are good buys.
      CONSUMER NONCYCLICALS           Many are leading the market now. 
      Food, soft drinks,              Multinationals are profiting from the falling 
      tobacco, drugs                  dollar. Plus, U.S. consumers buy these 
                                      products even if the economy slows. Share 
                                      prices are lofty, however.
      TECHNOLOGY                      Many tech companies are global players. 
      Computers, electronics,         Semiconductor and computer stocks have been 
      semiconductors                  booming, and the market could punish them 
                                      severely if earnings fall short of 
                                      expectations.
      
      DATA: MORGAN STANLEY, SALOMON BROTHERS, PRUDENTIAL SECURITIES
      
Before it's here, it's on the Bloomberg Terminal.
LEARN MORE