Airline issues help lift Dow 19 points

The Ticker

April 08, 1993|By Julius Westheimer

Airline issues led the way as stocks closed higher yesterday, lifting the Dow Jones industrial average by 19.45 points. The Dow closed at a session high of 3,397.02.

WALL STREET WISDOM: Mutual fund wizard John Templeton's rules for success: "(1) Invest for maximum total return, gain plus income. It's vital to protect purchasing power. A big mistake people make is putting too much money in bonds and CDs. (2) Invest -- don't trade or speculate. The market is not a casino, and if you move in and out too much you will lose, like most gamblers. (3) Remain open-minded; there are times to buy blue-chips, there are times to sit on cash. Most of our clients' money has been in stocks. (4) Search for bargains among quality stocks. (5) Buy value, not market trends or the economic outlook. All too many investors focus on the market trend or the economic outlook; the market and the economy do not always march in lock step." (Dick Davis Digest)

BALTIMORE BEAT: Wood Capital Management, a Towson-based investment advisory firm, sends results showing stock performance far outrunning the S&P 500-stock index, producing an annualized 19 percent return over 15 years. Last year Wood's stocks were up 18.4 percent vs. 7.67 for the S&P. Phone Robert G. Wood (296-8400) for a brochure with charts, graphs, etc. . . . BG&E is listed under "Electric Utilities for Above-Average Total Return" in S&P Outlook, March 24 . . . A T. Rowe Price ad in Money magazine shows that if you're in the 31 percent federal tax bracket (37.2 percent bracket including Maryland and local taxes), a taxable long-term bond fund allows you to keep (after taxes) $829 vs. $1,020 in a tax-free fund yielding 5.1 percent . . . One week from today, your federal and Maryland tax returns are due.

MONEY SAVER: "Although air couriers -- people who carry documents for a package-delivery company and forfeit their 140-pound checked-baggage allowance in exchange for the lowest fares -- have been bumming cheap rides for many years, few Americans are aware that you can fly round-trip as a courier to dozens of overseas destinations for about $200 to $300 . . . About 25,000 courier flights depart American cities each year . . . The quickest way to learn about these flights is through a booking agency. In New York, call Now Voyager (212-431-1616) or Discount Travel International (212-362-3636.) Also, read "The Insiders' Guide to Air Courier Bargains" by Kelly Monaghan, $14.95. Call 800-356-9315. (Business Week, March 29)

USE YOUR 401(k): "Dennis saves $10 a week but does not participate in his company's 401(k) plan. If Dennis continues to save this amount for the next 30 years, and if he earns a hypothetical 8 percent a year on his savings, he will have $41,685 when he retires. Mark takes home the same amount as Dennis, but saves for his retirement through his firm's 401(k) plan. If he also earns an average 8 percent, Mark will have $88,304 when he retires, over $46,000 more than Dennis. Mark will have more money because in a 401(k) plan, neither his current savings nor the earnings on those dollars is currently taxed." (Brokerage firm letter).

APRIL SHOWERS: The following stocks are currently recommended by eight newsletters followed by Hulbert Financial Digest's latest issue: American Barrick, Placer Dome, AT&T, Westcott Communications, Cisco Systems, General Electric, Merck and Pegasus Gold . . . These stocks are recommended by three or more newsletters as ones that outperformed the Wilshire 5,000 index over the past five years: Microsoft, General Cinema, Cooper Tire & Rubber, Handleman, Home Depot, Westcott Communications, Cisco Systems and Xtra . . . T. Rowe Price New Horizons and Rowe Price Equity funds are recommended by three newsletters followed by Hulbert . . . "Cycles project a top in stocks no earlier than late June." (Bob Carver's Market Clues) . . . "Our gold stocks 'buy signal' two months ago tells us that unless the Dow spikes above 3,520, the top we projected for late March or early April is fast approaching." (Institutional View) . . . "A series of disappointing economic reports could provide the excuse for a stock market correction." (Medical Technology Stock Letter) . . . "Stocks have more upside potential, though underlying valuation is deteriorating." (World Investment Strategic Edge) . . . "Stocks are in the midst of a minor consolidation phase. When completed, we'll see a resumption of an advance to Dow Jones 3,550-3,600 and a year-end target of 4,000." (Norman L. Yu Market Commentary).

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