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MONEY SMALL INVESTOR: INVESTORS PULL $65 BILLION OUT OF CDS STOCKS AND BONDS

 MONEY SMALL INVESTOR: INVESTORS PULL $65 BILLION
 OUT OF CDS STOCKS AND BONDS
 NEW YORK, April 6 /PRNewswire/ -- Since the beginning of the year, small investors have yanked $65 billion out of bank certificates of deposit that now pay only about 4 percent and reinvested most of the money in stocks, bonds and mutual funds, according to data gathered for Money magazine's Small Investor Index.
 Analysts estimate that $110 billion of CDs are due to mature this month -- the second largest monthly amount since last October. When most of those CDs were bought a year ago or more, yields were around 7 percent. Now small investors must decide whether to accept today's much lower yields.
 So far this year, most individuals have gone looking for higher returns in stocks and bonds. More recently, they have backed away from risky investments like aggressive growth stock funds, but they have continued to add billions of dollars to conservative growth and income funds.
 For example, T. Rowe Price in Baltimore reports that its aggressive New Horizons Fund, with assets of $1.4 billion, suffered net redemptions of $33 million in February and $37 million in March after attracting $7 million in fresh cash in January. By contrast, the firm's $1.5 billion Equity-Income Fund, which holds high-yielding blue chips, took in $16 million in January, $33 million in February and $62 million in March.
 Hugh Johnson, chief investment officer at First Albany in Albany, N.Y., recommends that conservative investors with CDs maturing this month favor bonds over stocks. "Put most of the money in Treasuries with maturities of 10 years or more that yield 7.5 percent," he says, "because the stock market is overvalued by about 10 percent."
 Last week, the Small Investor Index, which tracks the typical individual's holdings, fell $249 to $45,412. Stocks lost $338, while bonds gained $76. CDs and money funds contributed $14.
 This Last Year % change from a
 week week ago week ago year ago
 100.95 101.51 92.95 -0.55% +8.61%
 Latest changes for each asset
 % change from a
 Category Index Week ago Year ago
 Stocks
 NYSE 99.66 -1.77% +8.76%
 ASE/OTC 106.17 -3.51 +19.34
 Equity funds 102.12 -2.00 +10.60
 Bonds
 Taxable Bonds 99.74 +0.70 +10.81
 Municipals 101.13 +0.64 +10.13
 Bond funds 100.64 +0.65 +12.21
 Short-term assets
 CDs 101.18 +0.08 +5.54
 Cash 101.05 +0.07 +4.70
 Other
 Real estate 96.81 -0.58 -6.97
 Gold 93.07 +0.16 -5.88
 Dec. 27, 1991 equals 100
 Where average small investors have their money now
 Current Year ago Current Year ago
 NYSE 22.11% 21.90% Bond funds 5.33% 4.29%
 ASE/OTC 6.98 6.92 CDs 16.44 19.54
 Equity funds 5.20 4.02 Cash 23.10 21.83
 Taxable bonds 12.67 13.14 Real estate 0.77 0.76
 Municipals 6.90 7.08 Gold 0.51 0.53
 Sources: Bank Rate Monitor, IBC/Donoghue's Money Fund Report, the Federal Reserve, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council
 -0- 4/6/92
 /NOTE TO EDITORS: This material is also available in printable form from AP GraphicsNet and Access Services for graphics and tables (under the file name MoneyIndex) and from PR Newswire for full text./
 /CONTACT: Jordan Goodman of Money, 212-522-3618, or Patti Straus of Money Public Relations, 212-522-2695/


SH -- NY001B -- 5164 04/06/92 07:42 EDT
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Date:Apr 6, 1992
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