Where to tuck away money you'll be needing in a few years

The Ticker

September 23, 1998|By Julius Westheimer

Where should you put money you will need in several years? Don't invest in stocks. If the market declines sharply you might be forced to bail out with considerable losses. Instead, put the funds in Treasury bills, a CD or in a money fund.

Good news for small savers. The Treasury has slashed the minimum-purchase-amount for T-bills from $10,000 to $1,000, making three-, six- and 12-month government-guaranteed securities available to small savers for the first time.

What strategies show stock market profits? "Rising stock prices follow company announcements of share buybacks more than 75 percent of the time," says David R. Fried, editor of The Buyback Letter. "Look for well-managed companies that have significant buybacks under way, such as Dell Computer Corp., Intel Corp., Toys "R" Us Inc., etc."

Are you afraid of high-flying high-tech stocks? "Despite your fears, get aboard the high-tech roller-coaster," advises Working Woman magazine, October. "During the past five years, the S&P technology index gained more than 350 percent, almost twice as much as the S&P 500 stock index."

"If you don't invest in technology stocks," says Michael Murphy, "you're stuck with the old economy."

WALL STREET WATCH: "The average stock has already endured much of its possible bear market loss." (Hussman Econometrics)

"If we view bull and bear markets as moving between extremes of greed and fear, we should worry about this bull market. Judging from newsletter ads, greed is paramount."

(Hulbert Financial Digest)

Pub Date: 9/23/98

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