Stocks steady after big fall

The Ticker

March 21, 1991|By Julius Westheimer

Partly recovering from Tuesday's sharp drop, stocks regained their balance yesterday. When Wall Street opened today, the Dow Jones average stood at 2,872.03, ahead four points yesterday and 238 points for the year to date.

LOOKING BACK: If you had invested $10,000 one year ago in these categories, you would now have: in U.S. stocks (S&P 500-stock index) $11,254; Treasury bonds $11,231; money market fund $10,659; foreign stocks $10,119; gold $9,480. (U.S. News & World Report, March 18)

LOOKING AHEAD (in proportion received): "The market in mid-March is at an overbought extreme with valuations approaching historical highs. It's doubtful that Dow 3,000 will relinquish its role as a ceiling. Take some profits." (Robert Farrell, Merrill Lynch) . . . "Despite the market's rapid advance, technical indicators continue to improve. With some hesitation at 3,000, the Dow should be much higher before a significant setback." (Addison Report) . . . "We expect a three-year market crash bringing the Dow down to a 572 level." (P.O. Wall St. Forecast) . . . "We see a powerful bull market for at least another three months. Remain 100 percent invested." (Granville Letter)

DUSTY FILES: Did you realize that the Dow Jones average first closed above 1,000 in 1966, then promptly faltered and did not move above that level again for good until 1982?

LOCAL LINE: Gerald Scheinker, Legg Mason (486-80l0), will mail Mid-Atlantic Bank & Thrift Quarterly, also a purchase recommendation for Bell Atlantic . . . Call Steven Stauffer, Dean Witter Reynolds (547-7000), for Reader's Digest excerpts from "One Up on Wall Street" by Peter Lynch. ("Keep looking for the big winners -- Dunkin' Donuts, McDonald's, Hanes, Toys 'R Us, La Quinta -- knowing they might be right in front of you, waiting to be noticed.") . . . "To ensure a comfortable retirement, the key is to plan and start now. The same is true in making certain that your family is cared for after your death." (Barry Lavenstein, Mercantile Safe Deposit & Trust)

BALTIMORE BEAT: "No one can accurately predict the degree to which markets overprice the future, but unless investors' optimism is soon confirmed by sharp, continuous profits, what is a correction will soon become a bear market." (Rex Rehfeld, Gruntal) . . . "With higher taxes in store for 1991 for many taxpayers, municipal bonds may well be more attractive than taxable investments, but the increase in marginal rates doesn't warrant a complete portfolio overhaul." (Harry B. Gorfine Report, March, which the firm will mail you if you phone 539-5474) . . . Tune in "Money Matters" on Baltimore County cable channel 17, Tuesday at 8 p.m. and a week from today at 7 p.m. when I'll be Larry Adam's guest, looking into the hazy financial future . . . Baltimore Security Analysts Society spotlights CSX Corp. on Thursday, April 4, Stouffer Harborplace, noon.

SPRING SNIPPETS: "Interest rates are flattening out, may rise during March." (100 Highest Yields) . . . "To help ensure a comfortable retirement, the key is to plan and start now. The same is true in making certain that your family is cared for after your death." (Barry Lavenstein, Mercantile Safe Deposit & Trust) . . . "President Bush's capital gains reduction proposal has no chance this year." (Gail Fosler, economist) . . . "Consider filing separate tax returns. It's likely to make sense when one spouse has much larger deductions relative to income than the other." (Tax Hotline, March) . . . Your Federal and Maryland income taxes are due 3 1/2 weeks from next Monday . . . Tomorrow night, "Wall Street Week with Louis Rukeyser" features Robert Farrell, chief market analyst for Merrill Lynch . . . "The recession will be short, so says this market and stock market history." (Smart Money, March) . . . "Slow and steady wins the race." (Aesop)..."Fastest-growing 1990s occupations: paralegals, medical assistants, home health aides, radiologic technicians, medical secretaries, physical therapists." (CNN News)... 'All you have to do to be successful is follow the advice you give to others." (Bits & Pieces)

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