Stocks rally on rate cut

The Ticker

November 07, 1991|By Julius Westheimer

After the Federal Reserve lowered its discount rate yesterday to 4 1/2 percent, the Dow Jones average moved seven points higher, closing at 3,038.46. Yesterday's advance followed four "down" days on Wall Street.

MARYLAND MEMOS: T. Rowe Price's Equity Income Fund is listed under "Selected Issues" in Financial World, Nov. 12. The fund yields 4.5 percent and its stock selections include Entergy, Pennzoil, Provident Life & Accident. . . . U.S. Surgical, widely held here, is recommended by two or more newsletters that outperformed the market over 36 months, says Hulbert Financial Digest. . . . Washington Gas Light appears under "High-Yielding Stocks" in S&P Outlook, Oct. 23. Yielding six percent, the stock has paid continuous dividends since 1852. (No misprint). . . Legg Mason will mail "Company Comments," with pieces on Baltimore Bancorporation, Black & Decker, Bell Atlantic and Loyola Capital.

BALTIMORE BEAT: Myron Oppenheimer, investment chief, Security Trust/Maryland National Bank, will mail his firm's Investment Review, fall issue, if you phone 244-6590. The worthwhile piece covers Treasury yields, Standard & Poor's October under-performance, Equity Scoreboard and "Things to Watch." . . . Thursday, Nov. 14, Sheraton Hotel, noon, Baltimore Security Analysts host MBNA (formerly Maryland National Bank's credit card division), fourth largest credit card issuer in the U.S., stock up a whopping 69 percent since initial public offering earlier this year. . . . My travel agent quipped, "If you look like your passport photo, you're too sick to travel."

LOCAL NOSTALGIA: In the wake of the Pimlico Hotel Restaurant closing, I searched for, and found, a "Closing Menu" for the Hotel Rennert (Saratoga & Liberty streets), Dec. 14, 1939. (I was there). Sample meal for $1.15: Appetizer, roast prime rib of beef au jus, snowflake potatoes, garden spinach, rolls and butter, ice cream, beverage. (Sirloin steak was $1.50, jumbo imperial crab $1.25, with all those trimmings included).

LOOKING AHEAD: "Investing in long bonds today is like playing Russian roulette." (David Dreman, Forbes, Nov. 11) . . . "Warning: while most investment letters are bullish, best ones are not." (Mark Hulbert) . . . "Recession will probably be a double-dipper, like five of eight postwar slumps." (Gary Shilling) . . . "Short-term sell signal still in effect; long-term outlook positive." (Peter Dag Letter) . . . "This is high-risk time with the market offering to go higher while poised for a devastating valuation decline at any time." (Ripples in The Wave).

NOVEMBER NUGGETS: Tomorrow night, "Wall Street Week with Louis Rukeyser" hosts Elaine Garzarelli, who predicted the 1987 stock market crash. . . . "Larger money funds, both taxable and tax free, pay more than small ones." (Donoghue Money Fund Report) . . . "Some mutual funds are now willing to start accounts with as little as $50 or $100; check your broker." (Kiplinger Personal Finance, Nov.) . . . "If you invested $10,000 in Treasury bonds one year ago, you would now have $12,340; if in the S&P 500-stock average, $13,000." (Business Week) . . . "The individual investor is now back in the stock market." (Federal Reserve report) . . . Did you realize that the world's population grows by 1 million people every four days? (CNN News).

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