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MONEY SMALL INVESTOR INDEX: INVESTORS EYE CLINTON AND PILE INTO SMALL STOCKS

 MONEY SMALL INVESTOR INDEX: INVESTORS EYE CLINTON
 AND PILE INTO SMALL STOCKS
 /ADVANCE/ NEW YORK, Nov. 8 /PRNewswire/ -- Over the past five weeks as Bill Clinton headed to victory, Americans poured hundreds of millions of dollars into the shares of small companies and the mutual funds that hold such stocks, according to data gathered for Money magazine's Small Investor Index.
 Small stocks are attractive chiefly because they have recently been outperforming blue chips. Since July 1, the shares of small companies have gained an average of 13.5 percent, while Standard & Poor's 500- stock index has returned only 3.7 percent. Moreover, Wall Street pros expect the performance edge to continue in 1993 as Clinton stimulates the economy.
 Among the funds that have attracted large amounts of fresh cash, the T. Rowe Price New Horizons Fund, with $1.2 billion in assets, gained $27 million in October and another $2 million in the first week of November after having had net outflows of $6 million in September. Similarly, the $360 million Kemper Small Capitalization Equity Fund picked up $20 million in October and another $2 million in early November after a flat September.
 Most analysts think it is still not too late to get in on the rally in small-company shares. "Small stocks usually outperform big stocks by at least 15 percent in the first year of a Democratic president's term, and 1993 should hold true to form," says James O. Collins, chief investment officer at Insight Capital Management in Moraga, Calif. He thinks small stocks will do well as investors pump money into investments that promise fast growth in a low-inflation, low-interest- rate environment.
 Last week, the typical individual's portfolio, as tracked by the Index, rose $121 to a record $46,902. Stocks gained $4, while bonds returned $110. Certificates of deposit and money funds chipped in $11.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 105.18 104.91 98.08 +0.26% +7.24%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 106.03 -0.44% +9.49%
 ASE/OTC 109.79 +1.36 +12.62
 Equity funds 105.44 +0.21 +7.67
 Bonds:
 Taxable bonds 106.25 -0.41 +9.58
 Municipals 108.02 +3.79 +10.22
 Bond funds 105.53 -0.02 +7.97
 Cash:
 CDs 103.65 +0.07 +4.35
 Money funds 102.89 +0.05 +3.51
 Other:
 Real estate 92.05 -0.30 -9.34
 Gold 86.44 -0.93 -13.59
 Dec. 27, 1991 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 21.96% 23.00% Bond funds 6.53% 5.11%
 ASE/OTC 6.93 7.26 CDs 14.84 17.93
 Equity funds 5.89 4.51 Money funds 24.48 22.29
 Taxable bonds 10.73 11.21 Real estate 0.80 0.77
 Municipals 7.36 7.36 Gold 0.49 0.55
 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- 11/9/92 R
 /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/ CO: ST: IN: SU: ECO


LD -- NY045R -- 8387 11/06/92 20:20 EST
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Date:Nov 6, 1992
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