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The recreation industry is cyclical in nature, with earnings following the general economy. Cruise lines are adding more capacity to their liners, exercise and heal clubs are continuing to remain popular, but the toy segment has seen a lean year in 1999, and the bicycle industry is also importing more. These stocks are in the middle range of timeliness and investors need to be selective.

Recreation industry stocks are timely in the 4th qtr of 1999 due to low interest rates and the lack of inflation in the US economy, along with the toy fads in the 1999 Christmas selling season. Motor sports are forecast to become more popular in the year 2000, but the bicycle industry is facing tough competition from foreign makers. Several stocks in this industry are timely for 1999 and the year 2000 and have appreciation potential for the next three to five years.

Recreation industry stocks have become timely in 1999 due to increased leisure time for more Americans and the popularity of the products and services that this industry provides. Changing demographics are making cruise lines and boating more popular, and the toy industry is benefiting from the Internet, as well. Many stocks in this sector are timely and many others have good potential for the next three to five years, but investors need to be selective in their choices.

The demand for leisure products and services in the US is expected to remain good through the middle of the year 2000 with low inflation and unemployment and good retail sales, and prospects for recreation industry stocks are good as a result. The crisis in Kosovo has hurt cruise lines, but the recreation industry is being helped by demographic trends, and toys are including more electronic components. These stocks are timely in 1999, and several have good prospects for the next three to five years, but investors need to be selective.