Higher-yielding CDs could soothe stomachs of queasy investors riding a yo-yo market

The Ticker

July 26, 2000|By JULIUS WESTHEIMER

"If this yo-yo stock market makes you yearn for peace of mind, reconsider - or consider for the first time - certificates of deposit," says Kiplinger's Magazine in an article titled, "Dusting Off an Old Friend."

Some excerpts: "In place of humdrum CDs of yore, you'll find dozens of choices that offer high, inflation-adjusted returns. The yields are nothing to sneeze at."

"With inflation at 3 percent, 6- to 7-percent-plus yields from CDs offer government-insured, risk-free, inflation-beating returns."

"Check local banks, particularly if you have accounts there. Ask whether a big deposit - $50,000 or more - brings you a higher-than-advertised rate. Also, call your broker to see what's available. Shop the Internet; the Federally Insured Savings Network (800-351-4494; www.fisn.com) lists details for many CDs."

TAKE YOUR CHOICE: "I'm looking for a broad-based advance, with the averages breaking out above recent trading ranges." (Harley Letter, in this week's Barron's)

"This is going to be a long, grueling bear market, lasting for years, still unrecognized by Wall Street." (Investment Quality Trends)

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