Propelled by a rising dollar, the Dow Jones average added 14 1/2 points yesterday, closing at 3,246.81.
With Hurricane Andrew in the news, we looked back and found that on June 22, 1972, the day Tropical Storm Agnes struck Maryland, the Dow average closed at 950.71. The Dow shows a gain of 2,296 points, or 241 percent, in the 20 years between storms.
MARKET WATCH: Quote of the Week: "I don't think there's too much downside, but at the same time there's not too much upside." (Rao Chalasani, chief investment strategist, Kemper Securities) . . . "Inflation is in check, interest rates low, economic growth slow, bearish sentiment widespread. It's a great stock environment." (Vancap Select Portfolios) . . . "Investors should note that a stagnating money supply cannot fuel a bull market. We're approaching the top of the mountain." (Rational Investment Outlook) . . . "Even if President Bush fades seriously in the polls, I won't worry about stocks. Any sell-off is a buying opportunity." (Tom Gallagher, political analyst, Shearson Lehman)
LOCAL LINE: Myron Oppenheimer, investment chief, Security Trust-Maryland National Bank, sends along his firm's latest "Strategy Update." ("Mortgage-backed securities, long bonds and stocks can do well and make sense at the correct time but they have risks that short-term investments don't and should not be viewed as cash substitutes.") Phone 244-6590 for the full letter . . . Tomorrow night, "Wall Street Week with Louis Rukeyser" hosts Mario Gabelli, with panelists Mary Farrell, Robert Stovall and Carter Randall . . . Merry-Go-Round stock is listed under "Favorable Issues" in Professional Tape Reader . . . T. Rowe Price's International Fund and New Era Fund appear under "The Biggest Funds" in Lipper Analytical Services.
WALL ST. CHATTER: "A story is told that publisher B. C. Forbes met presidential adviser and successful investor Bernard Baruch entering the New York Stock Exchange on the day the Dow Jones average reached its July 1932 Depression low of 41.22. Baruch was whistling and singing. Forbes asked, 'How can you be so cheerful on such a terrible day?' Baruch's response: 'It's not a terrible day for the buyer.' Baruch, a contrarian, was able to amass a tremendous fortune by avoiding the Wall Street herd mentality." (Dick Davis Digest)
HOPEFULLY HELPFUL: "Refinancing a mortgage at a lower rate may save you less than expected. Problem: Most of those who refinance now are taking out much bigger mortgages than those they had originally. Monthly payments are higher and not all fees and interest on the new loan are tax-deductible. Better: Avoid refinancing for more than $100,000 over the existing mortgage balance -- unless the money is for tax-deductible home improvements or investment purposes." (Mendlowitz Weitsen & Co., CPA firm, New York) . . . "For those out of work, it's vital to keep track of all money spent searching for a job, including resume preparation, phone expenses, car mileage, airline fees, etc. These can be deducted from taxes as miscellaneous expenses above 2 percent of your adjusted gross income." (Price Waterhouse)
AUGUST ENDERS: Merry-Go-Round will sell damaged and irregular clothing at bargain prices Saturday, 9:30 a.m. to 3 p.m., at 3300 Fashion Way, Joppa, and will donate 25 percent of the proceeds to Our Daily Bread. Please bring a food item also, to be turned over to the soup kitchen. For details, phone Isaac Kaufman at 538-1000 . . . Speaking of clothing, the latest Kiplinger Washington Letter (Aug. 21) feels that retailing will show modest gains into early 1993 . . . Out of Sominex and want to read the party platforms? For the Republican platform, phone 202-863-8790; for the Democratic statement, call 202-863-8000 . . . "Of the 1,250 stock funds available, these had the longest winning streaks year after year: Beacon Hill, Investment Co. of America, John Hancock, Merrill Lynch Capital A, Nationwide Fund and Phoenix Growth." (USA Today) . . . "Stocks are vulnerable because they've already gotten their bang from lower interest rates, while higher profits needed to fuel another advance haven't materialized." (Arnold Kaufman, editor, S.& P. Outlook)
SUMMERTIME READING: "Living Cheap: Survival Guide for the '90s" by Larry Roth ($14.95) and "1,001 Ways to Cut Your Expenses" by Jonathan Pond ($19.95) . . . "If you're in your 30s or 40s and haven't accumulated much in savings, you've lost valuable time and opportunities." (Michael Evans in "How to Make Your Shrinking Salary Support You.")