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Salomon turns bullish
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April 3, 2001: 8:48 a.m. ET
Brokerage lifts equity weighting by 5%, says tech wreck is waning
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NEW YORK (CNNfn) - Salomon Smith Barney upped its equity weighting to 70 percent from 65 percent Tuesday in a research report saying much of the tech wreck seems to be in the past, but that anything more than a near-term rally in the sector is unlikely.
Reports of the market's demise would seem to be exaggerated, Salomon said, adding that global monetary and fiscal policy and the Fed's easing of interest rates should propel the market higher and bring financials to more of a leadership position.
 The report also said traditional valuation metrics show that equities should perform better than bonds, although recent news of bond issuance seems similar to the equity boom a year ago.
Investors' risk aversion is apparent across many fronts, suggesting a bottom, the report said.
But Salomon also lowered its year-end S&P index target to 1,400 and its Dow Jones industrial average target to 11,400.
Separately, the brokerage added Wells Fargo (WFC: Research, Estimates) to its recommended List. 
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