Dow climbing, near its high

The Ticker

December 26, 1991|By Julius Westheimer

Booming ahead for the fifth straight day, the Dow Jones average gained 28 points Tuesday, closing at 3,050.98. Briefly, the Dow poked through its record closing high of 3,077.15, set Oct. 18, then eased back.

TAKE YOUR CHOICE: "After the big 'flash' following the Fed dramatic interest rate cut, you go back to reality, and reality isn't changed all that much." (John Neff, manager, $8 billion Windsor Fund) . . . "We can go up 20 percent from here over the next 12 months." (Elaine Garzarelli, who called the 1987 crash) . . . "I didn't expect rates this low; throw in a tax cut now and we could see an explosive recovery." (Robert Stovall, money manager) . . . "Stocks now sell for 24 times reported earnings and 2.7 times book value, close to double normal levels. I'm buying 'puts,' betting stocks will decline." (Victor Sperandeo, president, Rand Management) . . . "Fed's big move is bullish, but people should be only 55 percent in stocks anyhow. Economy's problems, depressed real estate, excessive debt take time to fix." (Ned Davis)

YOU DECIDE: "Stocks go to DJ 3,300 or Bush is not re-elected." (Astrologer's Fund) . . . "Fear we are on verge of a Depression finds justification in IBM, which just fell to 1982 lows." (Inefficient Market Hypothesis) . . . "Short-term, we're not out of the woods, but very little damage has been done. Stay 75 percent invested." (The Chartist) . . . "There's no money left on the sidelines; get out of all stocks and mutual funds." (Wellington Letter) . . . "Things look serious. Long-term pattern continues to weaken; don't bargain hunt, but sell into strength." (Professional Tape Reader) . . . "We're late in the bull cycle, and 1992 risks will be high." (Robert Farrell, Merrill Lynch)

TICKER NOTE: Of the mass of material I recently read, about 60 percent is gloomy, 40 percent cheerful.

MONEY SAVERS: Here are "11th Hour Tax Planning Action Steps" from Ernst & Young's Financial Planning Reporter: "To accelerate deductions, pay outstanding property taxes and state taxes before Dec. 31. These are deductible when paid, even if not due until 1992. To defer income, delay receipt of self-employment income or year-end bonuses. To defer capital gains, sell short against the box to lock in gains while deferring taxes. Remember that this type of hedge forfeits any future upside potential."

BALTIMORE AND BEYOND: Black & Decker is listed under "Three Attractive Speculations" in S&P Outlook, Dec. 18 . . . Tomorrow night, "Wall Street Week with Louis Rukeyser" airs its annual year-end review with predictions and stock selections . . . "USA Today Moneyline (900-933-3000), 95 cents per minute, lets you program your investment portfolio and get its total each time you call." (Dollar Stretcher) . . . Call Ferris Baker Watts' Morry Zolet (659-4601) for "Electric Utility" booklet "for investors seeking above-average yields and high income," with specifics . . . "You can learn a lot about stocks by joining an investment club." (Forbes) . . . Call 539-5474 for Gorfine Tax Report, "Selling Real Estate Through the Installment Method." ("Use of seller-financing can reap tax and non-tax benefits in a tough real estate market.") . . . Dean Witter's Stephen Stauffer (547-7000) will mail "1992: Stocks, Bonds or Cash?" if you phone. ("Stocks if you're adventuresome or a long-term investor, bonds if you're concerned or conservative.") . . . Legg Mason's Gerald Scheinker (486-8010) will mail his firm's "Mid-Atlantic Bank & Thrift Quarterly".

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