Investors seem to be waiting for Clinton's talk

The Ticker

February 11, 1993|By Julius Westheimer

Stocks moved in a narrow range yesterday with the Dow Jones industrial average slipping 2.16 points and closing at 3,412.42. Investors appeared to be waiting for President Clinton's economic message next Wednesday.

AND NOW WHERE? "Approach this market with caution, keeping 15 percent in cash. Rising interest rates and earnings disappointments argue for a 10-12 percent correction." (Baring Securities Outlook) . . . "Higher highs lie ahead." (Cabot Mutual Fund Navigator) . . . "This is the right time to 'sell down to a comfort level.' If you're over 50 percent in stocks, lock in some profits." (Investech) . . . "Risk remains high." (Mercer Forecast) . . . "The grand supercycle is going out of style. This is the greatest top ever built. The NASDAQ is registering its final high." (Prechter's Elliott Wave Theorist)

BALTIMORE BEAT: Black & Decker is written up by Kenneth Fraser in Forbes, Feb. 15. ("Nine times what I expect B&D to earn in 1994 is too cheap for a great consumer products franchise. This stock could rise 100 percent by 1995.") . . . Dean Witter's Jack Rosenbloom will mail his firm's "Finding Higher Yields in the Fixed Income and Equity Markets" if you phone 547-7027. The booklet describes government bonds, zero-coupon bonds, mortgage-backed securities, unit trusts, etc. . . . Bank Maryland and Bethlehem Steel reached new 12-month highs early this week. . . . Tomorrow, Owings Mills-produced "Wall Street Week with Louis Rukeyser" spotlights "Emerging Markets" with guest Josephine Jiminez, Montgomery Asset Management, and panelists John Dessauer, Harvey Eisen and Louis Holland. . . . "T. Rowe Price Associates remains well-positioned to benefit from such major trends as the aging baby-boomers, sharp increases in savings rates and the rising importance of mutual funds. Although the stock is not cheap at 17 times earnings, we maintain a favorable position." (The Patient Investor)

TIME-SAVERS: "To save time, return phone calls near lunchtime or at day's end when people are less likely to chat . . . Set a specific phone time, like, 'Sure, I'd like to discuss that idea. I'll have 10 minutes at 4 p.m.' . . . Put a sign on your door: 'Please do not disturb from 9 to 10. Leave a message that you dropped by, and I'll call you.' . . . Try to meet in other people's offices, rather than in yours. It's easier to excuse yourself than to kick people out . . . When colleagues drop by your office for a chat, stand up as if you were leaving and talk as you walk them out the door." ("The Organized Executive," Warner Books, $9.95.)

MIDWINTER MEMOS: Texaco, Procter & Gamble, Exxon, and W.R. Grace allow you to buy stock directly rather than through brokers. BG&E permits you to buy $3,000 of its stock per quarter directly if you already own shares. If you wish to buy other stocks directly, phone the company you're interested in and ask for the Stockholders Service Dept. . . . On "Wall Street Week" Friday, Larry Sarbit, mutual fund manager, said, "The way to make money in stocks is not to lose much. You prevent loss by diversifying, dollar cost averaging and only buying a stock if you would buy the whole business. Right now I like Pfizer, Rollins and Philip Morris. The pharmaceuticals, badly pummeled, will eventually give superior results."

.5l HOPEFULLY HELPFUL: Interested in mutual funds? U.S. News & World Report and Barron's, both dated Feb. 8 and on newsstands this week, run sections on mutual fund performance, outlook, etc. Business Week, Feb. 15, also runs a cover story, "The Best Mutual Funds." . . . "Once you are 70 1/2 , you have to take your money out of an IRA. If you die before all the money has been withdrawn, the beneficiary of your IRA will inherit it, but he/she doesn't have to start withdrawing until reaching 70 1/2 . Therefore, [if you name] a grandchild as your IRA beneficiary, the funds will continue to accumulate on a tax-deferred basis for the longest time period." (Moneypaper) . . . "Resale prices on some limited partnerships have plummeted, and owners of such partnerships should not rush to sell. Resale firms are typically buying them at a bottom now." (Wall Street Journal) . . . "Check all Form 1099s as they come in and have them corrected if they contain errors. Make your 1992 IRA contribution before April 15. Deduct any expenses you incurred in looking for a new job." (Tax Hotline, Feb.) . . . "More Ways to Win in Index Funds" is worth reading in Fortune, Feb. 22. . . . "If a person can see both sides of a question, you can be sure none of his or her money is tied up in it." (1993 Stock Trader's Almanac)

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