What will perform best in 2002 — value, growth, or fixed-income?
Our feeling is that growth is likely to perform best in 2002. And it all points back to an economic recovery. Since 1960, the stock market has bottomed midway through an economic recession. If this current recession is average in duration, then the mid-September low will mark the launch point for a new bull market. If history holds true and our earnings projections come true for 2002, we see small-caps outperforming large-caps, the economically sensitive sectors beating the defensive sectors, and growth stocks outperforming value stocks. At least 50% of the stocks on our buy list come from the mid- and small-cap areas. Q: Sam, what are some of the S&P 5-STAR stocks among the small- and mid-caps? A: Some recent additions include PolyCom (PLCM ), which is a network-solutions company in the tech sector. Other small-cap names include Commerce Bank (CBH ), FTI Consulting (FCN ), and Landstar System (LSTR ), which is a trucking firm.
