Dow loses 26 points in 3rd day of slide


November 03, 1994|By JULIUS WESTHEIMER

Declining for the third consecutive day, the Dow Jones industrial average gave up 26.24 points yesterday and closed at 3,837.13. The Dow has fallen 93.53 points this week, as investors continued to worry about inflation, higher interest rates and the effect of the October employment report due out tomorrow.

Speaking of stocks, here, as promised, are the 15 worst Dow Jones performers over the past decade. (On Tuesday we listed the 15 best, led by Disney, Coca-Cola, Merck and Philip Morris, in that order.) Reading from the bottom, if you had invested $10,000 in each of these issues on Jan. 1, 1984, here is what your investment would have been worth on Dec. 31, 1993:

FROM THE BOTTOM: Surprise! The very worst performer was IBM -- the glamour darling of the 1970s -- wherein your $10,000 shrank to $4,600, a 54 percent plunge. Reading up the list: Bethlehem Steel $7,000; Westinghouse $10,000; General Motors $15,000; Alcoa $15,000; Eastman Kodak $16,000; United Technologies $17,000; Sears, Roebuck $18,000; Texaco $18,000; Union Carbide $19,000; Caterpillar $19,000; American Express $19,000; AlliedSignal $21,000; International Paper, $23,000 and Chevron $25,000. (Figures rounded. Data from Johnsons Charts, 1994)

SLIPPERY LEAVES: U.S. stocks have slipped to next-to-last under "Relative Portfolios," in Business Week, Nov. 7. A $10,000 investment a year ago would now be worth: In foreign stocks $11,740; in gold $10,560; in a money fund $10,209; in U.S. stocks $10,153 and in Treasury bonds $8,671. Earlier in the year U.S. stocks led the parade . . . Career Tip: "Better interviewing for the interviewer: Wait at least five seconds after each time the candidate stops talking before speaking. Often your silence will compel the other person to continue talking -- and this may provide you with very helpful insights." ("The Unwritten Rules of The Game" by Peter Scott-Morgan, $21.95) . . . "Good Deed: When writing to elderly people, it is particularly thoughtful to enclose any discount coupons for items you know they like or need." (The 1995 Farmer's Almanac)

STILL GOOD ADVICE: Attention stockbrokers! Here's sound advice from "The Hagers-Town Town & Country Almanack of 1895," reprinted 100 years later in the current edition: "Don't bring your troubles to the dinner table, or allow yourself to think of cares during meal time. Half the nostrums for the cure of dyspepsia, headache and neuralgia would disappear from the market if this rule would be followed. Silence and surliness on the one hand, querulous fault-finding and snarling on the other, are bad aids to digestion, and convert a feast into a fruitful breeder of disease."

CHEERFUL THOUGHTS: "Most stock market investors won't be sorry to bid 1994 good-bye. Before you do that, however, remember that the period ahead is usually the best time of any year. November typically begins a sharp recovery that extends for three months. December is the very best month on average and January is not far behind. Based on the S&P 500-stock index, December has been up 71 percent of the time and January 69 percent." (Yale Hirsch's Smart Money, Nov.)

SOBERING UP: Katherine Hensel, chief investment strategist at Lehman Bros. following the departure of Elaine Garzarelli, appeared on "Wall Street Week With Louis Rukeyser" last Friday. Highlights: "I'm increasingly nervous because bonds are down sharply, while stocks have moved up; that is a danger signal. The worst in bonds is behind us, but the stock market could drop 10 percent from here. Stock investors are not being rewarded for the risks they now take. Nevertheless, for the courageous, I have long-term buy recommendations: Ford, Chrysler, Deere, Johnson Controls, Barnett Banks, NationsBank and severely depressed electric utility stocks."

FOR 50 BUCKS: Consumer Reports, November, runs a helpful article, "How To Invest $50 Or Less." Highlights: "Buy EE Savings Bonds; you can buy a $100 bond for $50 . . . Pay off credit cards, $50 at a time. Paying off a 17 percent credit card balance is like earning 17 percent on your money . . . Join an investment club, where the typical monthly outlay is $25 . . . Ask your broker about mutual funds with $50 minimums . . . Invest $50 a month in a 401 (k) plan where you work; the money comes out of your paycheck automatically."

STOCK TOPICS: The next Federal Reserve Open Market Committee meeting will be Nov. 15; that's the group that sets interest rates . . . On Wednesday, Nov. 16, at the Hyatt Regency Hotel at noon, Baltimore Security Analysts feature the Rite Aid Corp., with Martin Gross, president, as speaker . . . "Strength in late October suggests that the bulls will have their day and push the Dow over 4,000 before year-end." (PAD System Report) . . . "We're just enjoying a minor rally in a bear market." (The Richland Report) . . . "The yield on 30-year Treasuries will fall to 7 percent by mid-1995." (David Levy's Industry Forecast) . . . "Our forecast indicates higher prices for the next 12 months." (Market Forecast) . . . "The bear market now in progress will be worse than 20 percent, equaling 800 or more points on the Dow average." (The Straight Shooter) . . . "Gold will be outperforming the Dow average from now on." (LaLoggia's Special Situation Report)

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