Investors usually win in November

The Ticker

November 01, 1996|By Julius Westheimer

NEARING Election Day, we note that investors are usually winners in November:

WINNING TICKET: "November and Wall Street team up well together. The 11th month is historically Wall Street's third best of the year, rising an average 1.4 percent over the past 45 years." (Stock Trader's Almanac.)

TAX CUT AHEAD? "No matter who wins the House, you'll probably get a better capital gains tax break on the sale of your home. Both parties are pushing for this.

"If Democrats win, you'll get a $500,000 exemption once every two years vs. today's one-time $125,000 exemption for those over 55. If Republicans win, $250,000 for a home you've lived in for three years, plus up to $250,000 more if you owned the home for 10 years." (Fortune, Nov. 11.)

START EARLY! "A 22-year old who starts investing $50 a month today will have $319,000 when he or she turns 62, assuming an average annual return of 10 percent. But if that 22-year-old waits 10 years before investing, he or she must invest almost triple that amount ($140 a month) to achieve the same $319,000 result." (Income Digest.)

"If you invest $4,000 the day a child is born -- and never touch the investment again or add to it -- that $4,000 will grow to nearly $2 million by the time the child turns 65." (Charles Carlson, the DRIP Investor.)

INTEREST RATE PULSE: "The economy has gradually slowed. That pattern, and the Fed not raising interest rates, set the bond market jumping. We're convinced long-term rates have begun to decline. We expect to see them at 6.5 percent by year-end." (Walter Frank's Moneyletter, Baltimore.)

"A zero-coupon bond is more sensitive to interest rate changes than a bond that pays periodic interest. Thus, for investors who believe interest rates will decline, zero-coupon bonds will provide a higher return than coupon bonds." (Income Digest.)

SELL YOURSELF: "Plenty of mature job hunters have succeeded in quests for new, well-paying, fulfilling, challenging positions.

"You must present an attractive, competitive 'package' that combines solid education, experience and technical skills. Continue to network. Know, then sell, yourself." (National Business Employment Weekly, Oct. 27-Nov. 2.)

IPO LANDSLIDE: "New issues continue to flood Wall Street, with investors eager to soak them up. The unrelenting bull market drives this IPO [initial public offering] boom. High stocks mean companies get more for their shares." (IPO Value Monitor.)

TICKER TIP: You can often buy new issues at much lower prices if you wait a few months after the initial offering.

DARK HORSE: "We believe Bristol Myers, a world-class marketer and manufacturer of pharmaceutical, beauty aids, etc., is an undervalued find." (Gruntal Research.)

"Japanese Stocks Show Promise," says S&P Outlook, Oct. 30, adding, "The Nikkei market shows strength, and prospects for a more stable yen added to its appeal. Japan now begins a new economic cycle, while we are ending ours."

"Moving just 5 percent of a blue-chip portfolio into the right growth stock will produce substantial returns with only slightly higher risk." (Smart Money, Nov.)

Pub Date: 11/01/96

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