Dow still up 9% this year

The Ticker

December 12, 1991|By Julius Westheimer

Snapping a six-day losing streak, the Dow Jones average edged a point and a half higher yesterday, closing at 2,865.38.

Despite a recent downhill market, the Dow still stands 232 points, or nine percent, above its New Year's Day level.

MARKET WATCH: "We have the strongest buy signal since October-January! It's always been profitable to buy when our indicators reached current levels." (Crawford Perspectives) . . . "On Nov. 14 my analysis indicated an intermediate top (one day before the 120-point drop.) We'll now fall below DJ 2,700; don't buy on dips." (Paradigm Opinion) . . . "Circle on your calendar for Friday, Dec. 13; that's when the CPI [Consumer Price Index] inflation number will be out, likely to show a surprising rise. Avoid long bonds and stocks." (Arie Vilner's Rational Investment Outlook.) . . . "Even with no further gains, 1991 will be an excellent mutual fund year. The primary bull market is intact." (Mutual Fund Forecaster)

HOPEFULLY HELPFUL: How should you handle your money next year? Your Money, (January) runs a cover story, "How You Can Profit in 1992." Partial summary: (1) Pay off non-deductible debts. ("With yields of CDs, etc., at their lowest in a decade, dip into your safety cushion to eliminate credit card debts and consumer loans.") (2) Stop making loans to Uncle Sam. ("If you get a big tax refund every year, you're giving the U.S. interest-free loans. Estimate your 1992 tax bill now and adjust exemptions so you don't overpay.") (3) Use caution when reinvesting for high returns. ("With savings rates low, many new investments are being trotted out and it's easy to be talked into something that offers twice what you're getting. Make sure you understand the risk.")

LOCAL NEWS: "What the Fed did over the last year should not be underestimated, even though results have been unimpressive to date." (Investment Counselors of Maryland) . . . Even in this "down" stock market, BG&E stock made the "12-month new high" listings at midweek . . . Linda Eisenberg, Maryland Food Committee (204 E. 25th St., Baltimore, 21218) writes: "The recession is having a devastating effect on the number of people who go hungry. Maryland soup kitchens serve 27 percent more meals than a year ago, 54 percent over two years ago. Please send emergency checks to our address." . . . A. G. Edwards' Patrick Larkin (547-1131) will send his firm's excellent 15-page, illustrated "Tax Saver" if you phone him . . . Program Note: My TV 11 early-morning Moneywise reports now air four days a week, live, Monday through Thursday around 6:40 a.m.

ENDPAPERS: "The average U. S. family spends 12 percent of its income on medical costs." (Wall Street Journal Report, WBAL Radio) . . . Speaking of WBAL, I'll answer your money questions this Sunday, 1-2 p.m. . . . Tomorrow night, "Wall Street Week with Louis Rukeyser" features "A Hot Winter Portfolio" with guest Kenneth Heebner and panelists Laszlo Birinyi, Gail Dudack and Martin Zweig . . . Surprisingly, IBM stock sank into the "12-month new low" listings at midweek, down 54 points, or 39 percent, from its yearly high . . . Potomac Electric Power appears under "Master List of Recommended Issues" in S&P Annual Forecast, 1992." . . . "If you thought you were locking in high yields through a fixed-income bond fund, you'll probably be in for a shock." (Ben Weberman, Forbes, Dec. 23).

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