Falling 47 points after Fed chief Alan Greenspan appeared negative on further interest rate cuts, the Dow Jones average closed yesterday at 3,224.96. Optimists stated that the 1.4 percent drop was not catastrophic, especially from this high level.
MARKET WATCH (in proportion received): "Major emphasis should now be on selling rather than buying." (Geraldine Weiss, Investment Quality Trends). . . . "This is no time for long-term investors to be buying stocks. There may be 100-200 points left on the upside, since stocks always go to extremes, but we're in the 'sell' range. Raise cash now." (Pad System Report). . . . "Stocks are approaching the end of a 10-year bull market. DJ 3,700 will mark the blowoff." (Richard Arms, money manager). . . . "Volume is now the highest since March 1991, but as long as prices continue to move higher with volume, high volume doesn't worry me." (A. C. Moore, Argus Investment Management). . . . "Buy a stock the way you would buy a house. Understand and like it so you'll be content to own it, for the long run, in any market." (Warren Buffet). . . . "In the long run we'll all be dead." (John Maynard Keynes).
LOOKING BACK: My father, Milton F. Westheimer, was born 120 years ago tomorrow. A member of the New York Stock Exchange for many years, with an office at 211 E. Redwood St., Baltimore, Dad taught me many things I will long remember. Samples: "Bonds are the house you live in. . . . Son, if you speculate, buy on margin or sell short, you will go broke. . . . Don't talk too much about what you're doing. . . . One dollar invested on 'Black Friday' is worth $10 any other day. . . . Never try to buy at the bottom or sell at the top. . . . Be patient; there is always another day. . . . Never fight a competitor; sell your own merchandise. . . . A newsboy cries his wares many times before he earns a penny." (And from Dad's Yale diary, 1891: "My half of rent for 2 rooms was 75 cents a week; we bought our own coal; my board was $5 a week; beer was 5 cents a glass, one week's laundry 15 cents.")
LOOKING AHEAD: "February, cold and drear, longest month of any year." (Old rhyme). . . . "February in its cradle lay, dead or alive, hard to say." (New England poem). . . . "Sharp January stock market moves tend to consolidate in February." (1992 Stock Trader's Almanac). . . . "I don't care if Bill Clinton had an affair or not; I'll vote for any man who can put me back to work." (Unemployed steel worker, on local talk show). . . . Tomorrow night, "Wall $treet Week with Louis Rukeyser" spotlights "A Canadian View of the U.S." with Howard (Pete) Colhoun, Michael Holland, Bernadette Murphy. . . . Speaking of W$W, the program has received more than 100,000 requests for the year-end transcript with panelists' 1992 stock selections. (For a copy, send $5 to "Year-End Review," c/o Wall $treet Week, Owings Mills, Md. 21117). . . . "This week the S&P price-earnings ratio stands at 23 times earnings vs. 15 one year ago." (Barron's, Jan. 27).
BALTIMORE & BEYOND: Last call for our 1992 Dow Jones forecasting contest; all postcards must be postmarked by midnight tonight. Details in Ticker column, Monday, Jan. 27. . . . Highest insured CD yields in this area are at Custom Savings and Loyola Federal. (Data from 100 Highest Yields, Jan. 27). . . . Dean Witter's Jack Rosenbloom (547-7027) will mail his firm's Higher-Yield Solutions for 1992 ("Electric utilities, health care REITs, adjustable rate preferred bank stocks, etc.").