After climbing 86% in 4 years, stock market may slow in 1997

The Ticker

November 06, 1996|By Julius Westheimer

WITH THE Dow Jones industrial average standing this morning at 6,081.18, it's worth noting that since President Clinton was elected four years ago on Nov. 3, 1992 -- when the Dow closed at 3,252.48 -- the blue-chip indicator has climbed 2,828.70 points, or a hefty 86.9 percent.

WHAT'S AHEAD? "History shows the stock market ahead 7.8 percent in the 12 months before presidential elections, but up a weaker 3.1 percent during the 12 months after." (Merrill Lynch Executive Summary.)

MAYBE BY 2000: "It took over 16 years for the Dow average to go from 500 to 1,000, reaching the 1,000 mark in 1972. Moving from 1,000 to 2,000 by 1987 required 14 years. Going from 2,000 to 4,000 by 1995 took eight years.

"And from 3,000 in 1991 to 6,000 took under 5 1/2 years. Each Dow double was accomplished in less time. The next double, from 4,000 in 1995 to 8,000 could therefore come by 2000." (LeFevre Monday Market Memo.)

JUICY RETURN: Washington REIT, an early real estate investment trust that owns and manages many Baltimore- Washington area properties, appears under "High-Income Portfolio" in Personal Finance newsletter. The REIT shows a six-year total return of 75.7 percent.

BONDS VS. STOCKS: What's the difference between a stockholder and a bondholder?

Black Enterprise, November, explains, "By buying bonds, you become a lender to that company. If you hold bonds to maturity, you get back your investment, but your earnings are limited to the amount of interest the company pays.

"When you buy stock, you own part of the company. The more money the company makes, the greater potential for the price of your stock and its dividends to increase."

BEST RESULTS: Under "Best Market-Timing Newsletters," Moneypaper, October, lists BI Research, Prudent Speculator, Cabot Letter, Argus-Vickers Weekly Inside Service, Contrary Investor, Margo's Market Monitor, Value Line and California Technology Letter.

LOOKING FOR WORK? The latest Kiplinger Washington Letter says, "The biggest recent increase is in service jobs," listing top opportunities in: Tourism, restaurants, government, repair, health, education and engineering.

MARYLAND MEMO: In a listing of "100 Top Franchises" in Success, November, we find these Maryland firms:

Sylvan Learning Systems, Columbia, ranked 13th; Marriott Combined, Fairfield and Courtyard, Bethesda, 44th; U-Save Auto Rental of America, Hanover, 84th; and Maid to Perfection, Baltimore, 89th.

McDonald's is ranked No. 1 nationally, followed by Ponderosa Steakhouse and Abbey Carpet Buying System. An accompanying article explains the ranking system.

Pub Date: 11/06/96

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