Dow expands 11 points after T-bill rates sink

The Ticker

September 10, 1992|By Julius Westheimer

In the wake of the lowest T-bill rates in 29 years, the Dow Jones average gained 11 points yesterday, closing at 3,271.39. The last time T-bill rates sank below 3 percent, in 1963, the Dow index hovered around the 750 level.

TAKE YOUR CHOICE: "I'm not wild about stocks at this point. Buy intermediate-term bonds, 3-7 years." (Martin Zweig) . . . "With the economy still very rough it's surprising how resilient stocks are, but it's a good time to get in; some 1993 earnings will be quite strong." (Eddie Brown) . . . "With inflation still a threat, RTC income growth is most important. Have two-thirds of your mix in stocks of companies with demonstrated success stories. Successful managers are now buying Salomon Bros., Biogen, Space Labs Medical and depressed real estate." (George Keane, supervisor of managers who handle about $7 billion in stocks, bonds, etc.) . . . "It's quite possible that the Dow could fall to 2,000 with Dow stocks paying out in dividends twice what they earn." (Adrian Day's Investment Analyst) . . . "No end in sight for this bull market." (Cabot Market Letter)

MIDWEEK COMMENT: "Domestic economic weakness finally being recognized by world markets. We're still bearish on U. S. stocks." (Personal Capitalist) . . . "Good news! Consumer confidence low, investors bearish, pessimism rampant, election up in the air. Why good news? Whenever gloom is thickest, history shows we're nearer a market low than top." (Jay Schabacker's Investing) . . . "Keep stock exposure low." (Stock Principles & Fundamentals) . . . "Stock market will decline 10-15 percent rest of this year." (Portfolio Planner) . . . "Desirable for investors to increase investments to 100 percent stocks." (Halvorson Research)

LOOKING AHEAD: Tomorrow night, "Wall Street Week with Louis Rukeyser" features "A Jolt for Utility Stocks" with guest Sandy Cohen, vice president at Morgan Stanley & Co., and panelists Frank Cappiello, Howard "Pete" Colhoun and William Waters. . . . Saturday mornings at around 8:10, we answer your money questions "live" on WBAL-TV (Channel 11). . . . Your third-quarter estimated federal and Maryland income tax payments must be postmarked by midnight Tuesday, Sept. 15. . . . Baltimore Security Analysts features PHH Corp. with its president and CEO, Robert Kunisch, Wednesday, Sept. 16, at the Sheraton Hotel downtown, at noon.

MONEY SAVERS: Here are "Ten Easy Ways to Save $100" from Dollar Stretching Ideas, a valuable little publication I subscribe to: Buy 10 articles of clothing at thrift stores instead of new. Dry four loads of clothes per week on clothesline instead of in your dryer. Once a month, make a pizza instead of having one delivered. Once a month, write a letter instead of making a phone call. Reduce your soda consumption by four cans a week. Bake two loaves of bread a week instead of buying them. Save the cost of two children's birthday parties by baking your own cake, making decorations and giving presents you made yourself. Reduce smoking by three cigarettes a day or quit entirely. Save two gallons of whole milk per week by using dry milk in cooking. Pack four inexpensive brown bag lunches per week for work or school.

SEPTEMBER SONGS: The S. & P. 500-stock price-earnings ratio stands at 24.5 times earnings vs. 19.9 times one year ago. The gap has narrowed recently. . . . Top insured money market and CD yields are at Custom Savings, Chevy Chase Savings, Eastern Savings Bank and Loyola Federal. (Data from "100 Highest Yields") . . . Looking back over the years (a birthday tradition), I recall that two of the biggest mistakes investors make are 1) not buying stocks when they're "down and out" and nobody wants them, and 2) not selling stocks, or part of them, when they're soaring and everybody is scrambling to buy them . . . "The IRS has increased the maximum first-year allowance for business cars." (Kiplinger's Personal Finance, Sept.)

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