Stock market surges, sags, rallies for gain

The Ticker

February 15, 1994|By Julius Westheimer

Worried about a trade war with Japan but cheered by bright economic forecasts, investors sent the Dow Jones industrial average on a roller-coaster ride yesterday. The Dow surged 26 points in midmorning, sagged to a 2-point deficit around lunchtime and rallied to close with a gain of 9.28 points, at 3,904.06. Bonds eased and the dollar fell sharply.

VALENTINE QUOTE: "Don't fall in love with your stocks; they can break your heart." (Overheard somewhere.)

BALTIMORE BEAT: Legg Mason's February "Investor's Dozen" includes Bausch and Lomb, Dial Corp., Enquirer/Star Group, Kranzco Realty Trust, National Convenience Stores, NEXTEL Communications, Peoples Heritage Financial Group, Schering-Plough, Shawmut National, Southern National, Telefonos de Mexico and Waban . . . Stocks with local connections reaching 12-month highs recently were Micros Systems, W. R. Grace and Mid-Atlantic Medical. On the unhappy side, BG&E slipped to a yearly low. Reason: Utility stocks often suffer when interest rates rise because investors find higher-yielding investments elsewhere. But on the brighter side, BG&E has raised its dividend in nine of the past 10 years and the stock price has more than doubled.

LOOKING BACK: "The Dow Jones industrial average doesn't often double in just seven years, but double it did from Jan. 7, 1987, when it first traded above 2,000 on an intraday basis, through Jan. 31, 1994, when it first traded above 4,000 intraday. Considering that the 1987 Crash intervened, this performance is all the more remarkable. Since Dow 2,000 in January 1987, the best diversified funds were: Thompson Opportunity B, CGM Capital Development, 20th Century Giftrust, 20th Century Ultra and Berger 100." (Mutual Fund Forecaster, Feb. 3)

LOOKING AHEAD: "You're going to need at least $1 million to retire comfortably, but getting there isn't nearly as tough as you think. All you have to do is save regularly and invest your money intelligently. To accumulate $1 million, you have to save $600 a month for 30 years. That presumes your money earns 9 percent a year -- a reasonable goal if you have a portfolio of good stocks and some bonds. Once you retire, your cool $1 million will generate an annual income of $50,000 and still give you enough growth to fend off inflation." ("The New Century Family Money Book" by Jonathan Pond.)

BALTIMORE CONNECTIONS: "Among the major producers of coated steel, we currently like the stock of Bethlehem Steel." (S&P Outlook, Feb. 9, in an article which begins, "We believe that selected steel issues remain attractive on good fundamentals, in large part due to the continued strength of auto sales and production.") . . . "The bulls have the seasonal winds at their backs right now; among our favorites is General Motors." (The Zweig Letter.) On "Wall $treet Week With Louis Rukeyser," Bonita Austin, one of Wall Street's top-rated cosmetic analysts and a Lehman Bros. senior vice president, said one of her favorite stocks is Procter & Gamble, partly because of the Noxell Division's Cover Girl line. She also likes Premark International (Tupperware), Colgate-Palmolive and Kimberly Clark de Mexico . . . The T. Rowe Price Japan Fund, up 13 percent last month, is listed under "January 1994's Best Specialized Funds" in Mutual Fund Forecaster, February issue.

HOPEFULLY HELPFUL: "Career tip: Don't put down other employees. Life is strange; some day you may be reporting to the very person you put down. And, as the old saying goes, 'Walls have ears.' " ("Finding, Hiring and Keeping the Best Employees" by Robert Half) . . . "Beware of tax preparers who guarantee refunds before completing returns, base fees on percentage of the refund, suggest that you omit some income, overstate deductions, etc." ("Julian Block's Tax Strategies.") . . . A recent Kiplinger Washington Letter says that shorter prospectuses for mutual funds will soon receive approval by the SEC, and that they will be included in direct mail and newspaper ads, so investors won't have to send away for them . . . A recent S&P Outlook says that dividend yields have slipped to around all-time lows, down to about 4.2 percent.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.