Pros Approach Market Differently

As stock-market volatility builds, investors squirm and pundits ponder whether the Dow Jones industrial average will soar or nosedive, here are some of the things that are on the minds of professional planners:

Ray Parkins, president of Parkins Investment Advisory Corp. in Orlando, is sticking to his call of May 24, 1994, when he said the Dow still “appears headed to the 5,000 level.” Parkins says that, despite so much inflation talk, family incomes have declined significantly during the past 10 years and that, “in an effort to hedge against the decline in income and upwardly creeping prices, the accumulation of liquid assets is essential.”

Parkins’ recommendation? Spend less, invest more.

Peter Chamberlain, president of B.R. Chamberlain & Sons Inc., has hitched his wagon to the information superhighway. The company has an information line over which clients can obtain figures on more than 10,000 securities through the Wall Street by Fax service.

A strong believer that “educated decision-making is the key to successful investing,” and that the process needs input from clients, Chamberlain said the service will enable clients and advisers to be on the “same page” during decision-making time. The reports are through research services such as Standard & Poor’s.Although Wall Street By Fax can be accessed by telephone only, Chamberlain said, it is expected to be available in the future via personal computers.

Anthony H. Ortenzi, who teaches personal finance, would like to shoot down the myth that there is some magic formula for investing profitably on Wall Street.

With the Dow Jones at giddy heights, Ortenzi said, pessimists are predicting an imminent correction, and some aggressive investors are uncharacteristically cautious.

Ortenzi is a believer in time, not timing. Investors must think ahead, and consider Wall Street’s longterm economic cycles.

For stocks, Ortenzi said, dollar-cost averaging is still the way to go. Even the legendary Peter Lynch wrote in his book, One Up On Wall Street, that “wise long-term investors score frequently hitting two-baggers. And they sleep more serenely.”

All the advisers say these are confusing and hectic times, that tried-and-true investment strategies still work, and that rushing into things without being well-informed usually doesn’t pan out.

It would be good to keep all these things in mind - and it wouldn’t hurt to keep an eye on Alan Greenspan.