Nikkei drives the Dow down

The Ticker

April 09, 1992|By Julius Westheimer

In the wake of a two-day, 7 percent Nikkei index free fall, the Dow Jones average dropped 32 points yesterday after a 62-point plunge Tuesday. When stocks opened today the Dow stood at 3,181.35, only 3.3 percent below its 3,290.25 peak, whereas Japan's index wallowed 54 percent under its 38,915 record high.

WHICH WAY NOW? (in proportion received): "Because the Nikkei index is now down over 50 percent, some Japanese stocks look attractive." (Deborah Allen on "Wall Street Week with Louis Rukeyser"). . . "When Tokyo sneezes, Wall Street catches a cold." (Old saying). . . "Stocks recently reached high valuation extremes not seen in history. We're at an intermediate top. Remember, stocks dropped 70 percent between 1968 and 1974." (Peter Eliades). . . "A 'real' bear market will come again. Risks are now abnormally high, potential rewards low." (Charles Will Investments). . . "This remains a bull market until proven otherwise." (The Chartist). . .'Treasury bonds are in a major bear market; prices could be cut in half." (Prechter's Global Perspective). . . "A man may know what to do but still lose money if he doesn't do it quickly enough." (Jesse Livermore.)

LOCAL VIEWS: "Voting Your Proxies," a Rothschild Co. letter by research director Joseph Wikler, says, "Shareholders are owners of the corporation. Your shares should be voted in a way that will maximize your ownership position. If management tries to weaken your powers of ownership or enrich itself with excessive stock options, we will vote against those proposals." For complete letter, phone the firm, 539-4660 . . . Stephen Stauffer, Dean Witter (547-7000) will mail his firm's latest "Strategem Letter," which has been remarkably accurate in previous years, including a written "Buying Opportunity" forecast 18 months ago when the Dow index stood at 2,500 . . . Legg Mason includes Bell Atlantic in its April "Investor's Dozen" recommendations.

CAUTION FLAGS: "As interest rates fall on CDs, banks now offer rising-rate CDs or 'indexed' CDs, to bring back customers. But ask a lot of questions. While potential yields seem better than anything else, look closely to see what needs to happen for you to get that yield. Best tactics: For rising-rate CDs, ask the bank how much the CD will pay in six months, one year, two years, etc. On an indexed CD, ask how much you'll earn if rates don't go up at all." (100 Highest Yields) . . . "A sudden stock market bust is clearly indicated by the pattern of so many 'new lows' now being recorded, exactly matching the 1989 pattern before the Oct. 13 mini-crash. Figures are so ominously close that they demand your attention, so as to set your house in order." (Joseph Granville Letter) . . . "The usual bull market successfully weathers many tests until considered invulnerable, whereupon it's ripe for a bust." (George Soros).

NOTES & QUOTES: Tomorrow night, "Wall Street Week" examines "April Markets" with panelists Mary Farrell, Carter Randall, William Waters . . . "A Basic Guide to Exporting," praised lavishly by the Kiplinger Washington Letter, is yours for $9.50 from GPO, P.O. Box 371954, Pittsburgh, Penn., 15250. Mention No. 003-009-00604-0 . . . Want to know more about your retirement disability benefits, Medicare health and medical insurance, how to file claims, etc.? Send $4.50 to "50-Plus Social Security Booklet," 28 W. 23 St., New York, N.Y. 10010 . . . Did you know that the right field B.& O. warehouse at the Camden Yards ballpark is the longest building on the East Coast? . . . "I hope the opening day crowds didn't call it 'Schaefer Stadium and Schmoke traffic.' " (Mayor Kurt Schmoke on WBAL Radio) . . .

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