Opinions vary on why market rallied 36 points

The Ticker

October 27, 1992|By Julius Westheimer

The Dow Jones industrial average gained 36 1/2 points yesterday, closing at 3,244.11. One local broker called the surge a "Bush rally" because the President moved up in weekend polls, but a CNBC observer credited the gain to Governor Clinton's continuing lead. Take your choice.

YOU DECIDE: "Stocks are getting set for pre- and post-election rallies, but historically the market declines in the first half of the year after an election. 1993 will not be good." (Robert Stovall, adviser) . . . "1993 will be a good year. I'm optimistic because interest rates will keep declining, and pessimism is too thick now." (John Dessauer, newsletter writer) . . . "The economy may surprise us on the upside, Wall Street on the downside. Interest rates will rise short-term." (James Grant, editor, Interest Rate Observer) Above quotes from Friday's "Wall Street Week With Louis Rukeyser."

BALTIMORE BEAT: Although Baltimore is not listed in Fortune's Nov. 2 issue under "Top Ten Cities For Business," we are described as "relatively inexpensive with an excellent port as well as good air, highway and rail access." The 10 top business cities are, in order, Seattle, Houston, San Francisco, Atlanta, New York, Raleigh/Durham, Denver, Chicago, Boston and Orlando. . . . These companies with local ties reached 12-month highs in our Sun Stocks listings last week: Aegon Insurance, Computer Data, May Co., Mid-Atlantic Medical and Micros Systems.

LOOKING AHEAD: November has historically been Wall Street's top month, gaining an average 1.7 percent over 40 years. . . . Want to make a substantial gift to charity, receive an income tax deduction and also receive income from the gift for the rest of your life? Write Linda Eisenberg, Maryland Food Committee, P.O. Box 1537, Baltimore, Md., 21203 or call (410) 366-0600 and ask for "The Key to Long-Term Prosperity." . . . "While we're still mired in recession, inflation is lurking just around the corner. Once demand for capital starts building again -- and we expect that to be soon -- interest rates will rise, along with wages and prices." (William Brennan, Ernst & Young)

WORKPLACE WISDOM: "Learn all you can. Get exposure to people who are not like you. One reason that stereotypes develop is because people don't spend enough time with individuals from whom they can learn different strategies." (Investor's Business Daily, via Morry Zolet) . . . "Traditional corporate staff positions are disappearing; don't be afraid to take a non-traditional finance job. Finance has become a shared function that exists in clusters of activity throughout a company." (Financial Executive magazine)

INVESTMENT WISDOM: "The best results come from holding stocks over long periods of time and not worrying too much about the temporary ups and downs of the stock market. Those who are content to grow rich slowly usually make out well in the long run." ("Financial Independence Through Common Stocks" by Robert Merritt) . . . "Do you yearn for high-yield investments so you can live off the income? Forget yield. Buy for total return -- gain plus income -- and buy for the long term. If you need money, set up an automatic mutual fund withdrawal plan." (David Stone, 70, manager, Beacon Hill mutual fund) . . . "You can double your income by switching from money market accounts into long-term Treasury bonds, but don't do it unless you'repretty sure that inflation won't get worse and bring rising interest rates with it." (Ben Weberman, Forbes)

MONTH-ENDERS: "If you invest $250 a month at eight percent, compounded monthly, you'll reach the following results in a tax-deferred savings plan vs. (in parentheses) the results in a non-tax-deferred account: 15 years $87,000 ($71,000); 20 years $148,000 ($112,000); 25 years $239,000 ($167,000). A tax-deferred plan, such as your 401(k), is the best way to stash money away." (Working Woman, November) . . . "Don't sell a mutual fund for the same reason that you'd sell a stock. If a stock doubles or triples, it may have reached its potential, but fund portfolios are constantly changing." ("How to Pick the Best No-Load Mutual Funds" by Sheldon Jacobs) . . . In a "Depression Shopping List: 1932-1934," we found a second-hand Ford $57, men's shirt $.47, cigarettes $.15, auto tire $6.20, bacon $.22 per lb., corn flakes $.08, two-month Europe tour $495. . . . "Ten Tips to Help You Network More Effectively" is worth reading in National Business Employment Weekly, on newsstands this week.

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