Ah, spring, it turns one's thoughts to baby boomers and the Dow

The Ticker

March 22, 1996|By JULIUS WESTHEIMER

WHEN THE Dow Jones industrial average closed yesterday at 5,626.88 on the first full day of spring we looked back to see where the popular indicator stood on past vernal equinoxes:

LOOKING BACK: Five years ago yesterday the Dow closed at 2,855.45, and 10 years ago the average stood at 1,768.56. The Dow almost doubled in five years, more than tripled in a decade.

LOOKING AHEAD: "Baby boomers will pour billions more into stock funds, and earnings for typical Dow stocks could rise 64 percent in next five years." (Money, April)

"Institutional herd is stampeding, charge seems unstoppable. But tide will turn. Bull and bear cycles have not been repealed." (Dick Davis Digest, March 18)

KEEP THAT JOB: Fortune, April 1, runs a helpful cover story, "How Safe Is Your Job?" with many questions under "Are You Next?" Samples:

"Are you 'beefing up' career skills, learning everything new? ... Staying 'in the loop,' getting invited to important meetings? Feel close to people in power? How about making money-saving, product-improving suggestions? Are you listened to? Do they keep you busy?"

OOPS! We mistakenly wrote (March 6) that Warren Buffett's monthly income was $11 million and change, figured at 8 percent on his $16.6 billion pile. But reader Martin H. Raila pleasantly pointed out we short-changed Mr. Buffett.

We should have made Mr. Buffett's piggy bank deposit $110 million every 30 days, not a mere $11 million. OK to put away the tin cup.

FREE STATE FILE: Rockville-based Mid-Atlantic Medical is under Healthy Picks in Health Care Stocks" in Business Week, March 25. ("A likely buyout target.")

Bell Atlantic, serving our area, is under "Favored Stocks" in S&P Outlook, March 20. ("Bell Atlantic, NYNEX might merge.")

BGE is under "Appealing High-Yielding Stocks" (5.8 percent) in same Outlook.

LOCAL HONOR ROLL: Alvin (Buzzy) Krongard, CEO, Alex. Brown, appears under "Silver Medal Winners" in Financial World's "CEO of the Year" March 25 issue.

Local "Bronze Medal Winners" include CEOs George Collins, T. Rowe Price, and Anthony Deering, Rouse Co.

MONEY MATTERS: "With automatic investment plan, invest late in month, historically poor time for stocks. This helps you buy ahead of price increases." (Jeremy Siegel, Wharton School professor)

"Ask your bank for higher CD rate you may get it. Arguments: Another bank offers one. You're a good customer, not only with deposits but with checking, etc. Your mortgage is there." (100 Highest Yields)

"I'm a marvelous housekeeper. Every time I leave a man I keep his house." (Zsa Zsa Gabor)

MONEY-SAVERS: "By keeping your car well tuned, you save $100 a year. Each degree you lower the thermostat saves 2 percent of heating bill. Eliminate 65-cent cup of coffee and 55-cent soda, save $300 a year." (Cheap Report, March)

GIFT WARNING: "With your power of attorney, spell out agent's right to make gifts. If you're incapable of acting, agent can make gifts, reducing your taxable estate. Without that authority, IRS could disallow gifts." (Moneypaper, March.)

BARGAIN COUNTER? "Kmart, with many problems, might now be a bargain around $10 a share. Other stocks once thought dead include Chrysler (1991 price $10, now $62), IBM (in 1993 $41, now $117), Merck (in 1993 $29, now $63.)" (USA Today)

WINTER'S END: Washington REIT (Real Estate Trust) is listed under "Suitable for Investors Seeking High Income With Wealth Preservation" in Personal Finance, March 13. Stock yields 6 percent.

Pub Date: 3/22/96

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