Dow rises 11.61 points

The Ticker

now only 23 below peakRising for...

April 15, 1993|By Julius Westheimer

Dow rises 11.61 points; now only 23 below peak

Rising for the third consecutive day, the Dow Jones industrial average gained 11.61 points yesterday, closing at 3,455.64. When trading ended, the Dow indicator stood only 23 points below its all-time peak and 319 points above its 12-month low.

WALL STREET WISDOM:

"Sell stocks at the first sign of major trouble. An investor has to be correct only 60 percent of the time to stay well ahead of the market -- provided he cuts his losses quickly enough." (David Dreman, market contrarian)

NOTES & QUOTES:

Final reminder: By midnight tonight, individuals must file 1992 income tax returns (Forms 1040, 1040A or 1040EZ.) For an

automatic four-month extension, file Form 4868 and pay any estimated tax due. Individuals must also pay first installment of estimated tax for 1993, using Form 8109 . . . To make you feel worse, as of today your personal share of the federal debt is $16,570 . . . "Opportunities abound abroad. At present U.S. stocks are overvalued; meanwhile, foreign markets are much cheaper than ours. Consider Sony and Telecom of New Zealand." (Moneypaper) . . . Beginning this week, I answer your money questions live on WBAL-TV (Channel 11) at 6.10 a.m. weekdays instead of at 6.45 a.m. The Saturday time remains at 8.15 a.m. We show the phone number on the screen.

LOOKING AHEAD:

(In proportion received, mostly gloomy): "April is the cruelest month, quoth the poet, and so it seems for spring, 1993. The S&P average may have seen its high this year." (Turning Points) . . . "The market has been more powerful than horseradish, Chinese mustard and habanero peppers mixed together but stocks are flirting with a graveyard in the sky since most are greatly overvalued." (Saturn Five's Market Update) . . . "Recently, low interest rates have given investors little alternative to stocks but this masked the market's basic weakness, which will show up as rising interest rates reduce demand for stocks." (Market Bias) . . . "Although the stock market remains vulnerable to short-term shakeouts, it is not vulnerable to a full-fledged correction." (Deemer Technical Research)

BALTIMORE BEAT:

The Rothschild Co. "Letter to Clients" reads, in part, "As we pointed out in the past, stock market valuations are quite high relative to historic measures such as price-earnings and price-book relationships, but the stock market has outperformed all other assets (gold, bonds, real estate, cash, commodities, etc.) over every 10-year period in history. We believe that equities will provide returns superior to any other asset class in the future." (For the full letter, phone Senior Investment Analyst Mark Felder at 539-4660 or write him c/o Rothschild Co. at 32 South St., Baltimore 21202)

MARYLAND MEMOS:

ZTC

David Clogg, president of Chapin Davis, sends along results of his firm's recent stock selections showing annual total return (gain plus income) of 19.84 percent. For details and new "Stocking Stuffer" recommendations, phone Mr. Clogg or investment advisory chief Michael Davis at 435-3200 . . . Local brokers say there are more Maryland tax-free bonds now available than in many years; check your bond dealer for rates, maturities, call provisions, etc. . . . Local stocks reaching 12-month highs this week include Allied Irish (First National Bank) and Petroleum & Resources . . . The "Wish List" of the Franciscan Center, 2212 Maryland Ave., includes men's shoes (large sizes, 11-13), socks, underwear, tooth paste, tooth brushes and soap.

IT'S MUTUAL:

"The Clinton market has been good to mutual fund investors. The average fund has handily outperformed the market indexes in the five months since Election Day. Most funds have made all-time highs in recent weeks. The biggest winner so far is Lexington Strategic Investment, a gold fund. The best-performing diversified fund is Capstone-PBHG Growth." (Mutual Fund Forecaster)

APRIL SHOWERS:

The latest Kiplinger Washington Letter feels that housing -- both used and new -- will become stronger this summer and that sales of new cars and trucks will climb over 10 percent from the same period last year . . . If you are interested in hiring low-income youngsters this summer, call National Alliance of Business, (800) 787-2899 . . . "The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least possible amount of hissing." (Jean Baptiste Colbert 1619-1683, quoted in T. Rowe Price's spring newsletter which extols the benefits of tax-free mutual funds) . . . "If you don't profit from your investment mistakes, someone else will." (Yale Hirsch) . . . "Money doesn't care who makes it." (Stock Trader's Almanac) . . . "The price of a stock varies inversely with the thickness of its research file." (Martin Sosnoff)

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