Some tips about riding a roller-coaster market

The Ticker

August 09, 1996|By Julius Westheimer

TO COPE with this roller-coaster market, here's some wisdom:

"Always sell what shows you a loss and keep what shows a profit." (Jesse Livermore, highly successful investor.)

"You can't win when you speculate. It's like holding a bear's tail. If you lose your hold, the bear will get you." ("Dollars & Sense," 1920.)

"Invest in simple companies that appear dull, out of favor and haven't caught the fancy of Wall Street." ("One Up on Wall Street," by Peter Lynch.)

MONEY FROM HOME: Woman's Day, Aug. 6, offers these hints under "How to Start a Home Business":

"Consider a service business, like party planning, bill collecting, bridal consulting, bookkeeping. Start with your best skills and interests. Do what wins you praise from friends. Use library's books and magazines for ideas.

"Keep your day job. Most profits go back in the business at first, so be sure to have another income source."

401(k) FILE: "In a 401(k), look for opportunity to sign up as soon as you can. Employer matching at least 50 percent of your contributions. Choice of at least six funds.

"Easy access to account information through toll-free number. Freedom to make transfers at least quarterly. Ability to borrow from your account and make hardship withdrawals." (Ted Benna, president, 401(k) Association.)

TAX TIP: "If you must sell securities held longer than one year, look for losing issues to offset gains on which you'll be taxed -- but never base a decision purely on tax considerations." (Tax Hotline, August.)

TAKE YOUR CHOICE: "Use any stock rally as a gift, a selling opportunity. The Dow will fall 15-25 percent from its peak, taking it down to 4,300." (Elaine Garzarelli on CNBC.)

"The market has now passed its '10 percent down' test and will continue to churn at high levels through the election." (Overpriced Stock Service.)

"Investors should stay fully invested, based on the market's primary bullish trend." (Dow Theory Forecasts.)

TIGHTWAD TIPS: "Use hotel lobby phones for long-distance calls. Some hotels charge 25 to 55 percent extra for convenience of using room phone."

"Buy your new car near closing time. Sales people want to go home, may make a quick deal and won't spend as much time examining your trade-in car."

"If you sent your kid to camp this summer, you might be able to claim child-care tax credit for part of day camp's tuition. See your accountant." (Worth, September.)

MID-SUMMER MEMOS: "Even after filing for bankruptcy, you may still get credit, but at a steep rate." (Business Week, Aug. 12, "The Best Moves If You're Broke.")

"Don't know how much to ask for the used car you're selling? Check classified ads to get an idea of what others are asking for make and model of your car." (Automobile Association of America.)

"Good send-off gift for college students: Phone calling card or your personal 800 number. Calling collect can cost a fortune." (Working Families, August.)

NOTES & QUOTES: Baltimore-based PHH Corp. is listed under "Stocks to Consider," in Worth, September. ("Strong management team, steady, predictable growth, stock undervalued.")

"Don't rely solely on financial assets like stocks. Commodities, real estate and other real assets may do better in hostile stock market." (Fortune, Aug. 19.)

"The most popular wedding gift these days is cash." (CNN

News.)

LAST, NOT LEAST: Kiplinger Washington Letter predicts that pay raises next year will average 4 percent, the same as for this year.

"Just as we doubted the justification for a major correction recently, the basis for a surge to new highs near-term is questionable." (S&P Outlook, Aug. 7.)

Callaway Golf, ITT Industries, Sunglass Hut International, Tupperware and Viking Products are written up under "Five Appealing Stocks New to Star Status," in same Outlook.

"Don't gamble. Take all your savings and buy some good stock and hold it till it goes up. Then sell it. If it don't go up, don't buy it." (Will Rogers.)

"Volatility will be unsettling, but overall the stock market isn't going anywhere." (Laszlo Birinyi in Forbes, Aug. 12.)

Pub Date: 8/09/96

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