'January Effect' means a jump in stocks is likely

The Ticker

December 17, 1992|By Julius Westheimer

Falling for the fifth consecutive session, the Dow Jones industrial average gave up 29 points yesterday to close at 3,255.18. IBM, a Dow Jones stock, dropped $4.25 to $51.875, now off 11 points, or 17.5 percent, in the past two days. Last year IBM touched $139.75.

AND NOW WHERE? "During the last 50 Januarys, the smallest-capitalization stocks have risen an astounding 7.5 percent on average. Since it makes sense that the "January Effect" will continue to exist, it's worth betting on it." (Mark Hulbert, Forbes, Dec. 21). . . . "The key to picking cyclical stocks in an anemic recovery is to find companies that have ability to raise prices, like specialty steel and chemical makers." (Peter Canelo, chief strategist, County NatWest). . . . "Bill Clinton's election victory persuaded investors to buy technology, infrastructure and pollution-control stocks. Technology stocks have gone through the roof." (Hugh Johnson, investment chief, First Albany Corp.)

LOOKING AHEAD: "The market is likely to get off to a good start in 1993. You could see 10 percent appreciation in six months." (James Solloway, Argus research director). . . . "Technical and option indicators are bearish, and when NASDAQ volume, mostly in speculative issues, exceeds NYSE volume, the overall market is close to a top. NASDAQ trading has been above NYSE volume almost every day for a month. That's froth!" (Aggressive Conservative Investors). . . . "The Dow will end 1993 at 3,350 and hit 6,800 by the year 2000. This will be one of the biggest decades of the century for stocks." (Heiko Thieme, manager, American Heritage Fund)

BALTIMORE BEAT: T. Rowe Price International Stock Fund is listed under "Silver Linings: Profiting from Europe's Pain" in U.S. News & World Report, Dec. 14. . . . "Only the Fastest-Growing Companies" is the title of tomorrow night's "Wall Street Week with Louis Rukeyser," with guest Jim Jundt and panelists Ralph Acampora, Elizabeth Dater and Martin Zweig. . . . Reminder: If you would like my individual investment advice, I will spend time with you at Our Daily Bread soup kitchen, 411 Cathedral St., this Saturday from 11 a.m. until 1 p.m. Please bring canned goods, fresh produce, peanut butter, coffee, hot or cold cereal, tea, sugar and/or money. . . . While IBM stock sank to a 10-year low at midweek, Bell Atlantic and Provident Bank stocks reached new 12-month highs. . . . Atlantic Federal Savings is listed under "Leading Car Loan Rates in Baltimore Area," and Bank of Baltimore appears under "Leading Home-Equity Loans in Baltimore Area" in Money magazine's 1993 Forecast issue.

HOPEFULLY HELPFUL: Here are places to write for helpful free brochures. Send stamped, self-addressed, business-size envelopes in each case. Regarding your car, learn how to deal with auto repair shops by sending for "Putting It All Together," National Institute for Automotive Service Excellence, 13505 Dulles Technology Drive, Herndon, Va., 22071.

To improve your home's security, order "Home Security Basics," Insurance Information Institute, 110 William St., New York, N.Y. 10038. . . . "Books of Wall Street" is a catalog of financial and business-related literature from Fraser Publishing, Box 494, Burlington, Vt. 05402. And regarding family vacations, write for "Family Travel Guides Catalog," Box 6061, Albany, Calif., 94706. (Data from Dollar Stretching Ideas)

DECEMBER DIARY: I answer your call-in money questions "live" each weekday at 6:15 a.m. and Saturdays at 8:15 a.m. on WBAL-TV (Channel 11). Phone 481-8844. Please keep your questions short, and only one question per caller, please. . . . Washington Gas Light stock is mentioned favorably under "Stocks for Different Times of Your Life: Retirees" in S.& P. Outlook, Dec. 2. Home Depot and Pet Inc., are recommended for young married people.

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