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The retail (special lines) industry is comprised of a wide variety of subgroups and companies that cannot be analyzed and evaluated as a broad category, and these stocks must be individually evaluated. Results for the holiday shopping season in 1998 were satisfactory for most retailers, and the US economy is poised for growth in 1999 which augers well for the retail industry. These stocks are not strong in 1999 and investors need to be selective both for the short and long term.

Consumer confidence in the US has decreased somewhat during the 3rd qtr of 1998, but interest rate cuts by the Federal Reserve Board should keep the economy going and a recession seems unlikely. Success in the retail industry in the 4th qtr of 1998 will depend on execution and the 1998 holiday shopping season, although some retail sectors are mixed. Investors need to focus upon growth companies for their selections.

Speciality retailers with strong merchandising talents will outperform their competition in 1994 and 1995. Factors such as moderate inflation and a weak US dollar will create a business climate that can be exploited by those retailers with lean, competitive operations. Investments in this industry should be focused on companies that have high ratings for financial strength and that have capital returns that are above the industry average.

The diversified retail industry can offer investors with various portfolio goals at least one strong choice. Low interest rates are boosting the housing and home improvement markets. Companies aiming to expand in the unsaturated urban markets or in Canada and Mexico due to the implementation of the North American Free Trade Agreement may be good investment choices. Potential investors should study individual Timeliness ranks.

The specialty retail industry will improve during the 1990s, as retailers continue to streamline their businesses and use high technology to keep inventory low. The economy seems to be improving in Nov 1993, and consumers are beginning to spend again. Another indication of consumer confidence is in the show of colored apparel planned for spring 1994. The stocks within this group should do well from 1993 to 1998, as retailers establish better working relationships with manufacturers.

The market for Impressionist and modern paintings has stabilized after an 18-month decline, and there is strong demand for minor works selling for under $100,000. Estimates for minor works from major artists such as Renoir remain too high, and the market is thin at prices above $1 million.

A punishing combination of internal and external blows is forcing Sotheby's Holdings Inc.'s earnings into a going, going, gone swoon. Last week, the Manhattan-based fine art auctioneer, which operates in [...]

Contemporary art pieces sold at auctions by Christie's and Sotheby's at prices lower than expected. The two premier auction houses experienced greater sales than they expected because of the economy. Major works were popular purchases.