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MONEY SMALL INVESTOR INDEX: INVESTORS GAIN 8.9% IN CLINTON'S FIRST YEAR

 /ADVANCE/ NEW YORK, Jan. 16 /PRNewswire/ -- In Bill Clinton's first full year as President, the typical individual's investments have gained 8.9 percent, falling short of the 10.3 percent rise during President Bush's first year in office, according to Money magazine's Small Investor Index.
 Both presidents enjoyed declining interest rates and a strengthening economy during their first 52 weeks on the job. Under Clinton, stocks in the index have gained 12.5 percent, or $2,242, since Jan. 20, 1993, while bonds returned 11.1 percent, or $879. In contrast, during the first year of the Bush Administration, stocks soared 13.4 percent, or $1,734, while bonds gained 9.3 percent, or $827.
 From investors' point of view, President Clinton passed his first economic test in 1993 with the enactment of his budget package; its combination of tax increases and spending cuts helped to keep interest rates down, which pushed up both bond and stock prices.
 Some market analysts believe, however, that Clinton's second year will not be as rewarding for investors. David Bostian, chief investment strategist at Herzog Heine & Geduld, a New York City brokerage, worries that the Federal Reserve may raise interest rates as early as the spring to prevent the economy from overheating. In addition, he suggests that the markets would respond badly to any taxes that might accompany a new health-care plan. His prediction: "If these problems surface, the average investor's portfolio could decline in value by as much as 5 percent."
 Last week, the Money Small Investor Index, which tracks the typical individual's holdings, rose $274 to a record $45,738. Stocks gained $202, while bonds returned $67. CDs and money funds added $8, and gold lost $7.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 100.63 100.02 92.42 +0.60% +8.88%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 100.91 +1.17% +11.54%
 ASE/OTC 102.17 +0.95 +13.24
 Equity funds 100.89 +0.70 +14.60
 Bonds:
 Taxable bonds 100.63 +0.56 +9.45
 Municipals 99.96 +1.39 +13.94
 Bond funds 100.57 +0.51 +10.20
 Cash:
 CDs 100.13 +0.06 +3.48
 Money funds 100.08 +0.04 +2.40
 Other:
 Real estate 100.24 +0.67 -1.08
 Gold 102.11 -1.90 +85.87
 Dec. 31, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 26.20% 26.60% Bond funds 7.52% 6.42%
 ASE/OTC 8.27 8.40 CDs 13.32 14.95
 Equity funds 8.47 6.41 Money funds 23.17 23.28
 Taxable bonds 5.83 6.77 Real estate 0.91 0.76
 Municipals 5.57 5.96 Gold 0.74 0.44
 Sources: Bank Rate Monitor, the Federal Reserve, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Money Fund Report, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council.
 -0- 1/17/94
 /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/


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Date:Jan 14, 1994
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