Stock market knocks off a pair of 'thousand-marks' in 1 year

The Ticker

November 22, 1995|By Julius Westheimer

WITH THE DOW JONES industrial average standing this morning above 5,000 for the first time -- the Dow finished yesterday's session at 5,023.55 -- we note dates when the popular index closed above other "thousand-marks."

First close above DJ 1,000: Nov. 14, 1972. Over 2,000: Jan. 8, 1987. Above 3,000: April 17, 1991. Over 4,000: Feb. 23, 1995.

This is the first year in which the Dow closed above two "thousand-marks" in one year.

SWEET POTATOES: Morgan Stanley's Byron Wien, who predicted the Dow's rise to 5,000, says, in this week's Barron's:

"Stocks have much more potential. The outlook, even after this huge rally, is still very good. The Dow could top 5,700."

SOUR PICKLES: On Sept. 15 last year a Salomon Bros. report proclaimed, "The summer rally is over and stocks are headed down 10-15 percent."

Really? Since that date, when the Dow average stood at 3,953.88, stocks have moved up about 26 percent, without a meaningful correction.

PUMPKIN PIE: Peter Lynch, ex-Fidelity Magellan Fund manager, says: "Investing isn't complicated. If a company's earnings rise, so will its stock. Earnings are up eight-fold since 1970, and stocks have kept up. Just buy quality companies where earnings rise steadily."

FRUIT CAKE: "Half the homeowners who contest property-tax bills have reduced them. Consultants are helpful, but very expensive, taking up to half your savings. You can do it on your own.

"Go to the local tax assessor's office and file an appeal if you're paying more than owners of comparable homes in your neighborhood.

"For a booklet 'How To Fight Property Taxes,' send $2 to National Taxpayers Union, 108 North Alfred St., Alexandria, VA 22314." (Cosmopolitan, November.)

MARYLAND MORSELS: Alex. Brown reports on Levitz Furniture in Barron's, Nov. 20, in part: "Announcement of Michael Bozic as CEO is positive, but sales remain tough."

"In 40 years, I've never seen so many warning flags pointing to stock market excess." (Charles Allmon, Growth Stock Outlook, Chevy Chase)

GIVE THANKS: Be grateful for new, easy-to-read mutual fund prospectuses. Instead of the dense, incomprehensible 50-page tome, now comes the two-page simple prospectus just introduced by eight mutual funds. More funds are expected to follow.

MENU ALOFT: With Thanksgiving tomorrow, here's a food tidbit: Did you know that airline captains and co-pilots eat different meals? To prevent food-poisoning of both, if the airline serves the captain beef and potatoes, for example, the co-pilot may dine on poultry, other vegetables, etc. (Told to me by a Delta captain.)

TURKEY HASH: The day after Thanksgiving is historically the slowest stock market trading day of the year.

If you're looking for a job, buy this week's National Business Employment Weekly, with a "must" article, "Sell Yourself With a 2-Minute Commercial." Details coming Friday.

"Sixty million Americans own stock today, double the number in 1970. And the The Dow is up 6 1/2 times." (Louis Rukeyser on the 25th anniversary of "Wall Street Week")

"The majority of billionaires in this country are below-average height." (Fran Lebowitz, author)

"The best foreign market for the next 10 years will be China -- the poorest nation now." (John Templeton)

"Yes, stocks look lofty, but instead of selling and paying a huge tax, hedge with puts and calls. See your broker." (Worth magazine, December-January.)

"Washington REIT, recently under pressure, is a 'cream of the crop' investment now." (Personal Finance, Nov. 22)

Surprise! "If you invested $10,000 in Treasury bonds one year ago, you would now have $13,316. In U.S. stocks, $12,988." (Business Week, Nov. 27, just out)

"Your will need not be a bone of contention. A living trust preserves your wealth, protecting it from taxation, creditors and unnecessary legal contests." (Black Enterprise, December)

"November begins the best six months of the year for stocks." (1995 Stock Trader's Almanac)

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