Dow advances slightly to 3,333 volume is light

The Ticker

December 29, 1992|By Julius Westheimer

Reversing direction in midafternoon, the Dow Jones industrial average eked out a seven-point gain yesterday to close at 3,333.26. Volume was light, with only 145 million shares changing hands.

LOOKING AHEAD: "This country's economy will never improve until the banks begin to lend money again. They want more collateral now than ever. Once they were too loose; now they're too tight. It's ridiculous. After 45 years we're thinking of changing banks." (Local shoe manufacturer) . . . "Here's what the stock market is saying: Rally started too soon to extend through Dec. 2. Technical strength collapsed in late November. November-December rally was a countertrend rally. This kind of December weakness is not typical. Recent rally ended in a classic bull trap. Again breaking below the Dow 200-day trendline spells major trouble." (Joseph Granville)

DECEMBER DIARY: "The two biggest mistakes investors make are being too pessimistic and too impatient. And pessimism is rampant now; this is reassuring because most bull markets start with an excess of gloom and doom." (John Templeton) . . . "My greatest stock picks blossomed in the second or third year in which I owned them, not in the second or third month." (Peter Lynch, ex-Fidelity Magellan chief) . . . Leaving work, have you noticed that evenings have been brightening since Dec. 7? And although we passed the year's shortest day (least amount of sunlight) on Dec. 21, sunrise will lag until Jan. 8, a phenomenon caused by the Earth's elliptical orbit around the sun.

PERSONAL NOTE: I will be among four panelists to appear on the year-end TV show of "Wall Street Week With Louis Rukeyser" Friday, Jan. 1, at 8.30 p.m., Channels 22 and 67. We four -- I will print the other three names on Thursday -- had the top-performing 1992 stock selections, which we made one year ago this week. On the show we'll give our Dow Jones predictions and 1993 stock picks.

BALTIMORE BEAT: "While most stock indices, including the S.& P. 500, NYSE Composite and NASDAQ hit new highs recently, the Dow Jones industrials languish 100 points below their July high. IBM, Westinghouse and Boeing -- Dow stocks -- were laggards this year." (Security Trust/Maryland National Bank Strategy Update by investment chief Myron Oppenheimer) . . . "During November emerging growth stocks tripled both the Dow Jones industrials and the S.& P. 500." (Smith Barney via Rick Faby, who will mail his firm's 35-page report if you phone 494-1853) . . . McCormick & Co. raised its dividend 10 percent last week. . . . Local stocks that reached 12-month highs last week included Citizens Bancorp, Legg Mason, Laurel Bancorp, Loyola Capital, McCormick and MNC Financial.

NOTES & QUOTES: "Never promote a man who hasn't made some bad mistakes, because you would be promoting someone who hasn't done very much." (Herbert Dow, founder, Dow Chemical) . . . "You learn much more from examining your failures than reviewing your successes. In facing the future, I count each lesson learned from my mistakes as being among my successes, and never expect to avoid all mistakes or hope to stop learning." (Kenneth Fisher, money manager, in Forbes, Jan. 4) . . . Did you realize that 56 percent of the Dow Jones industrial stocks suffered declines of 20 percent or more from their highs earlier this year? (Data from Barron's, Dec. 28)

YEAR-END NOTES: According to the latest "100 Highest Yields," the highest local federally insured money market yields are at Maryland National Bank and Custom Savings. Highest CD yields with same safeguards are at Eastern Savings Bank, Equitable Federal Savings (Wheaton), Custom Savings and Washington Savings Bank (Waldorf). For subscription information, phone 407-627-7330 or write c/o P.O. Box 088888, N. Palm Beach, Fla., 33401. . . . "After wowing investors by outperforming the S.& P. 500-stock index in 1991, the average stock mutual fund slipped back into its usual pattern of underperforming the index by about 2 percentage points. While the S.& P. returned 6.9 percent, the typical equity fund returned just 4.9 percent." (Business Week cover story "Where to Invest," Dec. 28, in an article entitled, "Mutual Funds Rake It In, But Investors Didn't").

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