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Lipper bullish in long run
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October 28, 1997: 4:34 p.m. ET
Analyst says long-term investments will weather short-term volatility
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NEW YORK (CNNfn) - Investors returned to Wall Street with a buying vengeance Tuesday, setting volume records and healing a wounded Dow with soothing gains.
Michael Lipper, President of Lipper Analytical Services Inc., joined Lou Dobbs on CNNfn's "In the Game" to discuss Wall Street's recent roller-coaster ride. Following are excerpts from the interview:
LOU DOBBS, CNNfn ANCHOR, IN THE GAME: What do you make of this? Does this look to you and smell like a rebound that could turn into a recovery?
MICHAEL LIPPER, LIPPER ANALYTICAL SERVICES: It could very well. Certainly, it's going to be led by traders and not the mutual funds.
DOBBS: Why do you say that?
LIPPER: Well, the mutual funds have not experienced any significant increase in redemptions. They may have been getting some switching of portfolios.
DOBBS: But, overall, the small investor is represented in those mutual funds - is sticking with his or her investment target and is not panicking?
LIPPER: In total, yes. And remember now, a big part of some funds are the 401(k) plans and on a net-net basis, there's not much change in flows.
DOBBS: One thing we've learned over the past few days certainly, Michael, in its demonstration is anything can happen with these markets right now in the current mood of investors. We are, however, seeing continued strength in the Nasdaq and the Dow Jones industrial average. But we're not seeing a dramatic spreading out of this positive turn. Should we be looking for that?
LIPPER: Well, one of the interesting things about yesterday is a number of stocks closed above their lows. I would think that we could have at some point here a broad-based rally, but that will probably bring in new selling.
DOBBS: New selling? And what would be your counsel to investors right now?
LIPPER: Investors should stay with their plan. Nothing happened over the last two days that's going to affect their ability to deliver against their plan 20 years from now.
DOBBS: Be long-term investors no matter - no matter of the short-term distractions, is that it?
LIPPER: That is correct.
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