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 Thu, Sep 17 1992 Date: Thu, 17 Sep 92 04:53:17 EDT Message-ID: 09-17 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 17, 1992 Source: USA TODAY:Gannett National Information Network ANALYSTS ADVISE CALM: The currency markets are shaking. European stock and bond markets are quaking. But analysts say investors should stay calm. "Any smart investor takes a long-term view," says Alexandra Armstrong, a Washington-based financial planner. So don't dump investments today or throw cash into any new ones. European markets are too volatile now for anyone but the most speculative investors. DISCUSSIONS COULD TURN MARKETS: Over the weekend, the world's leading industrial nations will meet to discuss international monetary policy. And the French will cast their votes on the Maastricht Treaty on European economic unity. Either of those events could spark big rallies - or selloffs - in world markets. U.S. investors most at risk in the European mess are those who own foreign stock and bond mutual funds. STOCKS SLIP: Stocks slipped Wednesday amid worries about a near-crisis in world currency markets. Investors are struggling to understand this week's rapid changes in monetary policy in Europe, traders say. Also, quarterly stock-index and other options expire Thursday and Friday, which typically creates volatility in stocks. Some analysts think U.S. stocks have held up well in light of the crisis. SPORTS SELLS WELL: Sports & Recreation, a chain of sporting-goods superstores, went public Wednesday at $17 1:2 a share and saw its price jump 15% to $20 1:8. That's no small feat. The market for new issues cooled in the spring. Other sporting goods shares have recently held public offerings and have also been rising. PLAYBOY WITHDRAWS OFFERING: Playboy Enterprises says it will withdraw a planned stock offering because the market for new issues is weak. Chief Financial Officer David Chemerow says the company may try to peddle the shares next year. The company filed in July to sell 3 million Class B common shares. HIGH-TECH STOCKS A GOOD BET: The fourth quarter tends to be a good one for high-tech stocks as companies traditionally roll out computer-related products. But IBMis approaching the next quarter on a disappointing note. Wednesday, the stock tumbled 2 3:8 to $83 1:8 - near its 52-week low. IBM also dropped Tuesday. Behind the fall: Six brokerages downgraded their opinion or lowered earnings estimates this week. INVESTORS GROW WISE: If wisdom comes with age, investors will find some relief in a new survey. It shows that while individual investors as a group are worried about a stock-market tumble, those least concerned are older than 65. That's not the way it's supposed to work. Analysts say it makes sense. People older than 65 are used to market cycles, so they know stocks have a higher rate of return over long periods. SURVEY IS SOBERING: Overall, discount brokerage Quick & Reilly's new survey's message is sobering. Based on the Sept. 5 poll of 502 active Quick & Reilly clients, Gov. Bill Clinton is likely to win the election and trigger a market drop. Some findings: If Clinton wins, 45% said the market would fall; if President Bush wins, 14% said the market would fall; the last three months, bulls dropped to 29% from 41%. PARALLELS BOOST OPTIMISM: Richard Eakle of Eakle Associates finds plenty of reason for optimism in the parallels between this election year and the close 1960 election. His view is bullish on stocks of small companies, which he thinks will boom through the 1990s. Reason: In the past when the Dow has soared over 10 years, as in the 1980s and 1950s, small stocks did better than the Dow the next decade. GOLD, SILVER RISE: Gold prices rose on the chaos in the currency markets Wednesday. At the Commodity Exchange, gold for current delivery cost $349.80, up $3.40. Republic National Bank quoted the spot price of gold at $349.20, up $3.20. Silver bullion was unchanged at $3.83 in London. On the Comex, silver for current delivery fetched $3.821 an ounce, up 1.5 cents. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3319.21 Thursday after closing down 8.11 Wednesday. The New York Stock Exchange composite opens at 231.07, down 0.07. The American Stock Exchange market value opens at 385.52, down 0.21. The NASDAQ OTC composite opens at 585.89, down 1.97. DOLLAR OPENS UP OVERSEAS: The dollar opens up on Thursday. It opens at 0.559 British pounds, up from 0.535; 5.174 French francs, up from 5.035; 1.520 German marks, up from 1.4888; and 125.35 Japanese yen, down from 124.15. (As of 3 p.m. Wednesday. 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