What to ponder while watching the roller coaster

The Ticker

August 23, 1996|By Julius Westheimer

IF YOU'RE puzzled by this week's roller-coaster market -- the Dow Jones industrial average rose 22 points Tuesday, dropped 31 Wednesday and gained 43 yesterday -- here are some investment choices to consider: FROM THE MASTER: "Invest -- don't trade or speculate. Buy low. Search for bargains among quality stocks. Remain open-minded about types of investments. Buy value, not market trends. Don't panic. Learn from your mistakes. Diversify. Don't be fearful or negative too often." (Sir John Templeton's "Rules for Successful Investing." )

MORE COURAGEOUS: "The 'Dow One' is extremely aggressive, requiring annual buying of the second-lowest priced stock among the Dow 10's highest yielders. The very lowest-priced stock has been less rewarding, because it's often a company in financial trouble, rather than one simply out of favor.

"The 'Dow One' gained an average annual 19.2 percent over 60 years, but carried more risk than the 'Dow 10.'

"Despite the risk, $100 invested in the 'Dow One' in 1939 is now worth $2,581,305." (Money, September.)

GETTING MORE: Cosmopolitan, August, has a helpful story, "How to Get a Raise." Highlights: "Never forget that favoritism is the rule, not the exception. Always remember it's your employer's job to pay you as little as possible for as much work as possible.

"But make no mistake -- you can still get a raise. Start tomorrow by looking particularly shiny: be well-dressed, radiate energy. Make absolutely certain that your boss -- and his or her boss -- know what you do and how well you do it. Send memos to keep your superiors up to date. Bring in industry news clippings."

ANOTHER ANGLE: "Even if your company can't afford to give you a raise (wage increases include a lot of expenses the employee doesn't see), your firm may be able to afford other perks that give you the same benefit as the raise you hoped for.

"Furthermore, the perks won't cost the company as much. Examples are extra vacation time, paid memberships in a health club, paid parking, free lunches in the company cafeteria, low-cost loans for car repairs, etc." (The Cheap Report, August.)

LOCAL LINE: Accustaff, parent of Baltimore-based Attorneys Per Diem, is listed once again under "Louis Navellier's Model Portfolio" in Smart Money, September.

The University of Maryland at College Park's Maryland Business School is listed in "The 25 Best Business Schools," in Success, September.

NEED MONEY? "If you're in a retirement plan that permits loans, borrow from your account if you need cash. There are no credit checks, no long applications to fill out and the interest you pay goes to your retirement account, not a third-party lender. No taxes are due if the loan is structured properly." (Physicians Financial News.)

NOTES & QUOTES: "The best time to buy a new public company is after all the hoopla fades and the stock tumbles to bargain levels." (Smart Money, September.)

The top-performing newsletters over the past 15 years were, in order: The Chartist, Value Line Investment Survey and Prudent Speculator. Over five years: OTC Insight, Prudent Speculator and Turnaround Letter. (Data from Hulbert Financial Digest.)

"For a free 'Everybody's Money' brochure on how to compare credit card offers, send a self-addressed, stamped envelope to Credit Cards, CUNA PR, Box 431, Madison, Wis. 53701." (Consumer's Digest, August.)

LAST, NOT LEAST: "Never underestimate your competitors. It's easy to believe your strategy is superior, but even the worst of your competitors has a few ideas from which you can profit." (Thomas G. Stemberg, founder, chairman and CEO of Staples Inc.)

"Ten Steps for Writing an Executive Resume" is worthwhile reading in this week's (August 18-24) National Business Employment Weekly.

"Stocks that perform best right before a correction tend to bounce back strongly right after one." (James Stewart, financial writer.)

Pub Date: 8/23/96

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