Investment Outlook-Year 2001.

In listening to all of the year end recaps and forecasts for 2001 you get the impression that the year now ending was some sort of gothic horror story for investors and that the investment world as we know it has suffered some cataclysmic demise. The truth, which would sell little commercial time, is that the year 2000 was better for the average stock and the average investor than the two preceding years. Remember that in 1998 and 1999 if you did not own the select group of mega sized "growth" stocks, your portfolio was more likely than not down in value both of those years. In looking at the top 1500 stocks in the U.S., 847, or 57%, were up in price for the year. Consider the price advance in such groups as utilities, energy; consumer or health care and you quickly see that, beyond the carnage of the once marquee names, it was an okay year.

During transition phases in the stock …