Dow stocks dip 9 points as interest rates edge up

The Ticker

August 05, 1993|By Julius Westheimer

Stocks drifted lower as interest rates edged higher yesterday with the Dow Jones industrial average down 9.22 points, closing at 3,552.05. Speaking of rates, the government issues three- , 10- and 30-year bonds next week. For details about how to buy the bonds commission-free, call the Baltimore Federal Reserve branch at 576-3300.

WALL STREET WISDOM: "Inside every buy there is a sale screaming to get out." (Robert Heller) . . . "There is an inverse reciprocal between the direction of a stock's price and the zTC amount of money you have just invested." (Arthur Samansky) . . . "If you don't know who you are, the stock market is an expensive place to find out." (George Goodman.)

MIDSUMMER MEMOS: "Top-performing investment newsletters over the last 13 years were, in order, Value Line Investment Survey, The Chartist, Zweig Forecast, Value Line OTC Special Situations and The Prudent Speculator. Top performers over the last five years were, in order, OTC Insight, MPT Review, Oberweis Report, BI Research and Medical Technology Stock Letter." (Hulbert Financial Digest) . . . And the following stocks are recommended by seven newsletters followed by Hulbert: AT&T, Cisco Systems, Intel, Intervoice, Merck, Reynolds & Reynolds and Schering Plough . . . If you had invested $10,000 one year ago this week in the following categories, here is the present value of your investment: foreign stocks, $13,300; Treasury bonds $12,300; U.S. stocks $11,000; gold $11,000. (Data from Business Week, Aug. 2.)

NOTES & QUOTES: Occupations expected to gain large numbers of jobs from 1990 to 2005, according to The Bureau of Labor Statistics, are, in order: systems analysts/computer scientists, computer programmers, child care workers, receptionists, information clerks, nursing aides, hospital orderlies, restaurant cooks, lawyers, accountants, auditors and security guards . . . Tax Hotline, August, says, "Pay your club dues in 1993 instead of in 1994 because the Clinton tax proposal would repeal the deduction starting next year." . . . Barron's, Aug. 2, says that the S&P 500-stock price-earnings ratio now stands at 19.8 times earnings vs. 16.1 times one year ago.

LOCAL LINGO: T. Rowe Price International Fund is listed under "Recommended Mutual Funds" in S&P's Midyear Outlook . . . "Black & Decker's 'Cup-at-a-Time' makes and disperses coffee for a single user. Automatic shut-off feature reduces the risk of fire." ("The Gadget Guru" by Andy Pargh) . . . "Checkpoints for choosing an investment adviser and trustee include experience, versatility, breadth of skills, stability of staff, stability of clientele, financial strength, cost structure." (Mercantile Safe Deposit & Trust Co.) . . . Two stocks with local connections -- Bell Atlantic (parent of C&P Telephone Co.) and Westinghouse Electric -- are listed under "Promising Stocks" in the cover story, "Best Ways to Invest," U.S. News & World Report, Aug. 9, on newsstands this week.

GOLD BUGS: "Gold is the only long-term store of value that has been tested for centuries. No other asset class has endured for as long. Gold would not be seriously overvalued today until it reached a price of $574. The ratio of gold prices to stock prices has reached a classic opportunity to switch. U.S. stocks should be at a minimum, gold positions should be increased." (Value View) . . . "Gold stocks are the place to be. When the next crisis hits the financial markets, investors will not be able to turn to U.S. government bonds as a safe haven. Government bonds are now part of the problem. When the next crisis hits, the safe haven will be gold and gold stocks." (LaLoggia's Special Situation Report.)

LOOKING AHEAD: "The market continues to show a short-term upward bias, but I simply don't trust it. If this is the summer rally, I'm not impressed. (Pro Trade) . . . "Our nominations to fill the stock winners' list for the second half are toys (holiday orders have been strong), forest products (government-imposed restrictions should send lumber prices sharply higher this fall) and computer software (most of the earnings horror stories are out of the way.") (Portfolio Planner) . . . "The technical condition of the stock market has deteriorated and is the basic source of risk to investors. A rise in short-term interest rates would be a negative, but we do not see a major bear market at this juncture." (Safian Investment Research) . . . "Another record for the Dow, then a pullback. This is the home stretch for the bull market." (Green on Money) . . . "The positive trend for higher bond prices and lower interest rates remains in place." (Alan Shaw, Smith Barney.)

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