Stocks erase Tuesday loss

The Ticker

January 23, 1992|By Julius Westheimer

Moving 32 points higher yesterday on heavy volume, the Dow Jones average erased Tuesday's 1 percent loss. When Wall Street opened today the Dow indicator stood at 3,255.81, or 24 percent above its 2,619.06 level one year ago.

WHAT NEXT? "Long term, we're still on the buyers' side. Our indicators, including the risk model, say last December's major buy signal should boost stocks to Dow Jones 3,500-3,800." (Smart Money) . . . "Our composite barometer remains bullish, but clearly the risk is there. Just remember what happened in 1929 and 1987, the only other times the dividend yield sank below 3 percent. The alternative to 3.5 percent CDs is stocks, until they fall and then the rush to the exits will be furious. We will avoid overstaying." (No-Load Mutual Fund Newsletter) . . . "Become more humble as the market goes your way." (Bernard Baruch, successful investor).

BALTIMORE BEAT: Tomorrow night, locally produced "Wall $treet Week with Louis Rukeyser" looks at "The 1992 Stock Outlook" with guest Bill Dodge, Dean Witter chief strategist, and panelists Alan Bond, Marty Zweig and Mr. Ticker. . . . Two stocks widely held locally, U.S. Surgical and Duty Free International, were among last year's top Big Board performers, according to Fortune, Jan. 27. Ranking No. 10, Duty Free shot up from $14 to $50, up 261 percent, and U.S. Surgical climbed from $36 to $111, ranking No. 18, ahead 212 percent. For comparison, the S&P 500 stock index climbed 26.3 percent in 1991. At midweek, BG&E and Potomac Electric Power yielded about 6 1/2 percent; BG&E just announced a three-for-two stock split.

HOPEFULLY HELPFUL: According to "100 Highest Yields," these local area institutions now pay the highest yields on insured CDs: Loyola Federal, Custom Savings, Equitable Federal Wheaton), Washington Savings (Waldorf), Chevy Chase Savings. Check each for rates, maturity dates, etc. . . . "Investors should be aware of capital gains distributions before mutual fund investing. Delay your purchase until after the distribution or you'll be paying taxes on profits you had no share in." (Moneypaper, January) . . . Your 1991 income tax return and estimated 1992 first payment are due April 15.

JANUARY JOURNAL: Only a week and a half remain in our Dow Jones forecasting contest, dinners and lunches with Mr. & Mrs. Ticker the prizes; complete details in Ticker last Thursday (Jan. 16) and to be repeated Monday. . . . "Best of estate tax avoidances is called GRITS -- gift of your residence to an irrevocable trust for your children. See your accountant." ("Complete Book of Wills & Estates" by Alexander Bove, $9.95) . . . Sunday, 1-2 p.m. on WBAL Radio, we'll discuss "How to Read the Financial Pages" . . . "The poorest man at the table always picks up the check." (My father) . . . "Business is quite simple; it's other peoples' money." (Andre Dumas, 1852) . . . Did you know that Paul Revere's picture is on the $5,000 U.S. savings bond? . . . Rick Faby, Smith Barney (494-1853) will send his firm's impressive brochure, "Emerging Growth Stocks," if you phone him. ("SB growth index up 69 percent last year vs. Dow Jones plus 20 percent.") . . . Latest Kiplinger Washington Letter says that U.S. auto makers will now try harder than ever to get back their share of the market. . . . "This year, interest on the national debt will exceed every other budget expense; debt will exceed $5 trillion by 2000." (World News Digest).

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