Full plate for Wall Street of turkey dinner, fixings

Julius Westheimer

November 27, 1992|By Julius Westheimer

Encouraged by strong economic news, stocks advanced Wednesday with the Dow Jones industrial average gaining 17 1/2 points and closing at 3,266.26.

The Dow is now up 2,246 points, or 220 percent, since Thanksgiving Day 20 years ago, Nov. 23, 1972, when the Dow stood at 1,020.54 during President Richard M. Nixon's administration.

DARK MEAT: "Warning! The over-the-counter chart has reached a potential double-top level. Markets cannot successfully hold new highs on just the strength of the generals while the troops flounder." (The Institutional View) . . . "There are good reasons to be afraid now. The world economy shows slow growth, outright recession in many economies, high interest rates in Europe and a steep fall in global corporate profits." (Dessauer's Journal) . . . "Our tentative forecast is for a 20-25 percent correction of market averages from the second half of 1993 into 1994." (Inefficient Market Hypothesis) . . . "We're at the start of a 10-year prolonged bear market." (Proctor's Investment Management)

SWEET POTATOES: "Barring strong negative news on the political front, we expect the slight improvement in the S&P 500 to continue." (Ins & Outs) . . . "December has historically been Wall Street's strongest month, gaining an average 1.9 percent over the past 42 years. November and January ran second." (1993 Stock Trader's Almanac) . . . "Stocks that will do best in 1993 are those with relatively little foreign exposure. Big gains will come in environmental, construction and technology sectors." (Portfolio Planner). Note: Of recent forecasts, about 60 percent are gloomy.

MIXED VEGETABLES: "If President Clinton carries out his promise to raise taxes from 31 to 36 percent, tax-free municipal bonds will become more valuable. At the 31 percent bracket, a tax-free bond yielding 6.6 percent is equal to a taxable bond at 9.6 percent. At 36 percent, it is the equivalent of 10.3 percent." (Wall Street Journal) . . . "Charles Schwab offers a no-fee IRA to investors opening an account by Dec. 31, 1992. A $10,000 minimum balance is required." (Donoghue's Money Letter) . . . "Make year-end charitable gifts by certified check. Reason: Funds are removed from your account the moment the check is certified, so you don't have to worry that the recipient might wait until after January 1 to deposit it. With certification, you get the deduction immediately." ("1001 Ways to Cut Your Expenses" by Jonathan Pond).

CHESAPEAKE CHOWDER: Bethlehem Steel stock is recommended for purchase by top Wall Street steel analyst Peter Marcus in Barron's, Nov. 23 . . . Tuesday, Dec. 1, Baltimore Security Analysts feature Alex. Brown & Sons, with CEO and President Mayo Shattuck as speaker at theStouffer Harborplace Hotel at noon . . . Rick Faby, Smith Barney (494-1853), will mail "Emerging Growth Stock Monthly." ("For the third time in the past four months, emerging growth stocks outperformed the broader market averages. A basket of small growth issues will substantially beat the S.& P. earnings growth.") . . . Phone PaineWebber's Marvin Fribush (576-3220) for "Alternative Sources of Income." ("A precipitous drop in short-term interest rates left many investors scrambling to replace higher income. This report presents many alternative investments.") . . . A. G. Edwards & Sons' Patrick Larkin Jr. (547-1131) will mail "Tax Saver: How to Cut Taxes and Increase Investment Returns," a valuable 15-page color booklet.

DESSERT & COFFEE: Tonight, "Wall Street Week With Louis Rukeyser" hosts John Templeton, highly successful mutual fund manager who turns 80 this year . . . Mr. Rukeyser's father, one-time financial columnist Merryle Stanley Rukeyser, who died recently at age 92, once said, "I have lived through every President from McKinley to George Bush and the best for the economy was Dwight Eisenhower. That's because he left things alone." . . . To check on your Social Security payments and future benefits, call 800-772-1213 and request the earnings and benefit estimate form. After you fill it out and send it in, you'll get a complete rundown of your year-by-year history . . . "Mortgage rates have definitely leveled off and it looks like they'll move only a bit higher over the next several weeks." (100 Highest Yields, Nov. 23) . . . "Rising Short-Term Interest Rates Pose Major Threat to Stock Prices." (LaLoggia's Special Situation Report, just received) . . . "Things may come to those who wait, but only the things left by those who hustle." (Abraham Lincoln) . . . "The only really smart thing about me is that I know enough to hire men who are smarter than I am." (Charles Walgreen) . . . "Great works are performed not by strength, but by perseverance." (Samuel Johnson) . . . "The best minds are not in government. If any were, business would hire them away." (Ronald Reagan) . . . Happy Thanksgiving to all, and I hope all your stocks are not turkeys.

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