Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.invest,americast.usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Wed, Sep 16 1992 Date: Wed, 16 Sep 92 04:36:01 EDT Message-ID: 09-16 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 16, 1992 Source: USA TODAY:Gannett National Information Network DON'T WORRY ABOUT FLUCTUATIONS: Sharp stock market fluctuations on the heels of Germany's reluctant interest-rate cuts aren't anything to worry about, analysts say. Sharp pullbacks in European markets and the U.S. reflect some second-guessing about how soon the Germans will cut rates again. German officials warned that there is no room to cut again. But a drastic cut will be needed, says expert Suresh Bhirud. MARKET REVERSES ON TUESDAY: Stocks fell Tuesday, giving back much of Monday's big gains. Economically sensitive stocks that led the market Monday were weak, and technology stocks fell. Traders say Monday's gains were exaggerated by heavy buying among short sellers. William Raftery, analyst at Smith Barney, Harris Upham, says one problem the market faces is a lack of leadership from any single stock group. GILLETTE IS A GOOD BUY: Two things people may not know about Gillette: It makes and sells a lot more than razor blades and its stock may be a very smart investment. The Boston-based company might be described as a defensive growth stock. It has strong franchises in brand-name consumer goods that tend to sell whether the economy is growing or shrinking. And it has a record of strong earnings. GILLETTE WILL KEEP GROWING: Gillette will keep growing at a good clip, analysts said Tuesday. The consensus estimate is that earnings per share will increase 17% a year for the next five years, says Zack's Investment Research in Chicago. Credit Gillette's strategy of obtaining leading market share, worldwide, in certain categories of consumer products. The strategy continues to impress analysts. MARKET CONFUSES FUND TIMERS: Investors who follow Mutual Fund Strategist were dancing Monday when the Dow Jones industrial average rose 71 points. The newsletter told subscribers Sept. 2 to get into stock funds. But Tuesday, the Dow sank 49 points and those investors were gnashing their teeth. Most fund timers advise having half an investors money in the market and half out. TECH FUNDS ARE A SURE THING: September is the time to buy science and technology funds. The rule of thumb: Buy tech funds when the American Electrical Association meets in October and sell them when San Francisco brokerage Hambrecht & Quist holds its technology conference in April. The rule has lost money twice in the last six years. But when it works, it works big and analysts say it's not just a quirk. SOCIAL CONSCIOUS FUNDS MULTIPLY: San Francisco-based Parnassus Fund, the hot-performing social-conscious stock fund, has three new siblings. They are a balanced fund, which invests in bonds and dividend-paying stocks; a fund that invests in any type of taxable bonds except corporate junk bonds; and a municipal-bond fund that invests only in California bonds. Sales charges have been waived until Dec. 31. FIDELITY OFFERS PROGRAM: Fidelity Investments has a new program to get parents started on college savings. Investors can open a Uniform Gift to Minors Act or a Uniform Transfer to Minors Act trust account at Fidelity for just $100 if they agree to accumulate $1,000 in a year. The old minimum initial investment was $1,000. The plan also lets investors have $100 each month transferred from bank accounts to college savings. NEWSLETTER IS LAUNCHED: Morningstar, the Chicago fund tracker, has launched 5-Star Investor. The newsletter features stories on specific funds and trends in fund investing as well as performance figures on 500 selected mutual funds. One-year subscription: $65. Call 1-800-876-5005. GOLD MIXED, SILVER UP: Gold prices fell marginally in the United States Tuesday after rising overseas. Silver was up. On the Commodity Exchange, gold for current delivery fell 40 cents to $346.40. Republic National Bank said gold ended at $346.00, down 45 cents. Silver bullion rose in London to $3.83 from $3.79. On the Comex, silver for current delivery fetched $3.806 an ounce, up 3.5 cents. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3327.32 Wednesday after closing down 48.90 Tuesday. The New York Stock Exchange composite opens at 231.04, down 2.69. The American Stock Exchange market value opens at 385.73, down 4.32. The NASDAQ OTC composite opens at 587.86, down 6.35. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly up on Wednesday. It opens at 0.535 British pounds, up from 0.529; 5.051 French francs, up from 5.038; 1.488 German marks, up from 1.4887; and 124.2 Japanese yen, down from 124.4. (As of 3 p.m. Tuesday. Source: First American Bank of New York.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing editor: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM