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 Mon, Aug 24 1992 Date: Mon, 24 Aug 92 04:10:13 EDT Message-ID: 08-24 0000 DECISIONLINE: Personal Investing USA TODAY Update Aug. 24, 1992 Source: USA TODAY:Gannett National Information Network MARKETS STUDY WHITE HOUSE RACE: Now that the presidential campaign has started in earnest, financial markets are getting a bad case of nerves. Wall Street favors President Bush and the Republicans in this year's election, because it sees Republicans as more pro-business than Democrats. But analysts' hopes for a Bush victory were shaken last week at the Republican convention. Markets now may examine a Clinton win. (For more, see special Election package below.) JAPANESE RALLY WILL BE SHORT: Japan's surprising stock market rally is likely to be short-lived, analysts say. "The real problems of the Japanese economy remain," says James Lyle, manager of the Fidelity Overseas Fund. Japanese stocks are "not exactly a screaming buy," says economist William Sterling. The Nikkei average jumped 13% in three days to 16,217 Friday after hitting a 6 1:2-year low Tuesday. SEC SUES ENERGY COMPANIES: The Securities and Exchange Commission Friday sued Sunaco Energy Inc. and Femethanol Inc. and the companies' principals, accusing them of violating federal securities laws. The SEC claimed that Sunaco and Fermethanol collected $3 million from 240 investors by selling interests in limited partnerships allegedly involved in natural gas drilling, gas processing and and ethanol plant. INVESTORS MAY BE CIRCLING T2: Street talk has it that a group of investors is ganging up on "shorts" - investors who bet on lower prices - by aggressively buying and touting stock in T2 Medical, a group of home and outpatient infusion centers. The stock collapsed from its 1992 high of $67 3:4 to a low of $17 3:4. But it's been rising in the past month, closing Friday at $28 1:8. The company went public in 1988. FLEET FINANCE INVESTIGATED: Fleet Financial Group, the USA's 14th-largest bank-holding company, could be in for trouble. Fleet Finance, its Atlanta-based $2.6 billion mortgage-lending and servicing arm, is under investigation. Reason: Allegations that it's making home- improvement loans in Georgia, chiefly to low-income families, at outrageously high interest rates. LOANS REQUIRE FORFEITURE: Fleet Financial Group's Fleet Finance is said to be under investigation for making home-improvement loans at high interest rates to low-income families. The loans are said to be accompanied by provisions for home forfeitures in case they can't be repaid. The probe is being conducted by the Georgia office of Consumer Affairs in conjunction with the state attorney general's office. ARCHIVE FILES STOCK OFFERING: Archive Corp. Friday announced it has filed a common stock offering for 5 million shares with the Securities and Exchange Commission. Proceeds of the offering will be used for repayment of debt and for repurchase of warrants. The offering will be co-managed by Bear, Stearns & Co. Inc., Needham & Co. Inc., and Hamilton Investments Inc. BUFFETT SLAMS AIRLINES: Airlines are the worst industry that investor Warren Buffett says he has ever looked at or invested in, especially USAir Group. Buffett claims that adding up all the cumulative profits and losses since the days of Charles Lindbergh would put the industry in the red. BROWNING EYES N.Y. MARKET: Waste-disposal firm Browning-Ferris Industries is weighing a move into New York's lucrative garbage-disposal business, reports USA TODAY columnist Dan Dorfman. It may not be easy, though. The city's garbage business is widely viewed as mob-controlled. A spokesman says the firm has no present plans. Another insider, though, calls the situation fluid. GOLD, SILVER BOTH MIXED: Gold fell 10 cents a troy ounce Friday on the New York Commodity Exchange to close at $337.30. Republic National Bank of New York quoted bullion at $337.50. Gold rose in London to $337.40 a troy ounce, from $337.35 late Thursday. Silver bullion rose 1 cent in London to a late bid price of $3.76 an ounce. On the Comex, silver for current delivery fell 0.5 cent to $3.723 an ounce. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Monday at 3254.10 after closing down 50.79 points Friday. The New York Stock Exchange composite opens at 228.61, down 1.77. The American Stock Exchange market value opens at 384.31, down 1.56. The NASDAQ OTC composite opens at 563.70, down 4.16. SPECIAL PACKAGE ON ELECTION: DOLLAR COULD FALL, REGARDLESS: What market analysts say lies ahead: The dollar could continue its fall, no matter who pulls ahead in the presidential election. Bond yields should begin to dip again soon. A lower dollar probably won't drive bond yields higher. Economist Kim Rupert says 30-year Treasury bond yields could fall to 7% because the economy likely will remain weak, keeping inflation low. STOCKS REMAIN CLOUDY: Analysts say not to expect stocks to go very far in either direction until the presidential candidates clear up their positions on key issues. "There were no questions answered," in Bush's acceptance speech, says Lawrence Wachtel, analyst at Prudential Securities. "Where's the game plan?" But expert Paul Erdman sees a gradual rise out of the recession. ERDMAN PREDICTS A RISE: Market expert Paul Erdman sees a gradual rise from the recession regardless of who wins; the pieces already are in place for a rebound next year, he says. He sees a leaner corporate machine from cutbacks and restructuring; a falling dollar, which adds to competitive muscle; interest rates that could head even lower; low inflation; and increasing productivity. FIRST YEAR DOESN'T MATTER: Economist Evelina Tainer says it won't matter much who has been elected, economically speaking, during the first year. The economy still will be struggling under the weight of a huge federal budget deficit, and both consumer and business spending still will be held back by reluctance to add to debts. It could be 1994 before either candidate's agenda has much economic impact. (End of package.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing editor: Beth Mann. (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