March 5, 1993

The Economy A fundamental shift in investment strategy is being caused by the plunge in interest rates to the lowest level in decades. Many money managers are flocking from bonds to stocks in search of higher returns, propelling some market averages and helping companies raise money to pay down debt and expand. [ Page D1. ] New orders for manufactured goods dropped sharply in January while the number of people applying for unemployment benefits jumped in late February. [ D2. ]

The young black woman with the gold sneakers, slacks, braided hair and Mickey Mouse watch stepped into the elevator in the Capitol. "This elevator is for members only," the elevator operator said frostily.

EVEN if you don't share my conviction that Bernadette Peters and Martin Short are among the most winning of performers, you still might admire how they play the losing hand they've been dealt in "The Goodbye Girl." In their heroic and tireless effort to put over the dull musical at the Marquis, these stars would serve the audience dinner and fill out its 1040 forms if given the chance. Ms. Peters goes so far as to dress up as a plate of french fries with ketchup on top - don't ask why because no explanation is forthcoming - and Mr. Short hobbles about in golden Mary Pickford curls and matching lame tights for an Act I finale that requires him to play Richard III in drag. Both stars cheerfully contend with agressive child actors and garish band arrangements that could drown out Ethel Merman, not to mention a nausea-inducing turntable that is the centerpiece of the most hideously designed big-budget musical in years.

Waco Sect Is Capable Of a Very Long Standoff With thousands of dollars' worth of stored food, their own water tower and at least two backup generators, David Koresh and his followers might be able to hold out for months against Federal agents who have been surrounding their compound near Waco, Tex., since Sunday. Page A16. The Big Shift to Stocks Plunging interest rates have prompted investors to shift from bonds to stocks, a move that could have wide effects on the economy. Page D1. A Judge and Jail Time Plea deals are being considered in the extortion case of Sol Wachtler, New York's former Chief Judge. Page B6.

It is rare that a neighborhood, once singled out by city planners, can avoid accepting certain unloved byproducts of urban life -- the prisoners, the homeless, the sewage. But last month Sunset Park, Brooklyn, forced the Dinkins administration to back down on plans to build a sludge composting plant there. The move testifies, among other things, to the growing power of Hispanic voters in city politics.