Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.latimes.money From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Managing Your Money SMALL CHANGE Investors: Beware Short-Term Trends Date: Wed, 11 Nov 92 11:08:11 EST Message-ID: HEADLINE: Managing Your Money SMALL CHANGE Investors: Beware Short-Term Trends Publication Date: Tuesday November 10, 1992 BYLINE: Investors tend to focus on current market trends, even when investing for the long haul. And that can be a big mistake, according to Arnold Kaufman, editor of the Standard & Poor's investor newsletter, The Outlook. "By not evaluating stocks and other investments over five- to 10-year spans, (investors) expose themselves to too much volatility," Kaufman says. Investment specialists agree that the key to a substantial return is aiming for it over time, rather than trying to hit the jackpot. Kaufman cites the current stock market as an example. Major market indexes are near all-time highs and corporate earnings are weak. That makes stocks seem unattractive, but the opposite is true for long-term investors, he maintains. During the five-year period ended Sept. 30, the S&P 500-stock index showed an average annual return (dividends plus appreciation) of 9%. Kaufman expects stocks to do equally well in the next five years, which means they should beat fixed-income investments, he says. This article is copyright 1992 The Los Angeles Times Home Edition. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM