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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS EARN 2.6% IN THIRD QUARTER

 /ADVANCE/ NEW YORK, Oct. 3 /PRNewswire/ -- As a sharp decline in interest rates drove stocks and bonds to record highs this summer, the typical individual's portfolio gained 2.6 percent in the third quarter, according to Money magazine's Small Investor Index. That increase brings individuals' return for the year to 6.8 percent, or 9.2 percent on an annualized basis -- just slightly better than the 9 percent return small investors have averaged over the past 20 years.
 Stocks, which make up 42.2 percent of the index, were the best performers in the third quarter. They rose 4.4 percent, adding $899 to the average individual's portfolio. Aided by a rally in technology shares, small-company stocks outperformed blue chips, 8.4 percent to 2.9 percent.
 Bonds, which make up 19.8 percent of the portfolio, gained 2.7 percent and added $258 to the typical investor's holdings. A weakening economy helped push the yields on long-term Treasury bonds below 6 percent, the lowest level in 25 years.
 Cash investments like money-market funds and certificates of deposit returned a mere 0.7 percent in the third quarter, reflecting today's low short-term yields. Since cash equivalents make up 36.5 percent of small investors' holdings, the 0.7 percent rise boosted the portfolio by $123. Gold plunged 10.4 percent in the third quarter. Gold prices suffered as inflation receded and gold traders took profits following the metal's 50 percent rise in the first half. But since bullion and gold-mining shares make up less than 1 percent of the typical portfolio, gold's plunge cost the average small investor only $35.
 Last week, the Money Small Investor Index, adjusted for the latest Federal Reserve data, rose $155 to a record $49,502. Stocks gained $139, and bonds rose $9. CDs and money funds added $9 and gold lost $2.
 This Last Year % Change from a
 week week ago Week ago Year ago
 106.78 106.44 96.54 +0.31% +10.61%
 Latest Changes For Each Asset
 % Change from a
 Category Index Week ago Year ago
 Stocks
 NYSE 107.58 +0.33% +13.41%
 ASE/OTC 112.68 +1.40 +31.89
 Equity funds 110.81 +1.00 +18.29
 Bonds
 Taxable Bonds 109.01 +0.18 +9.10
 Municipals 110.67 -0.02 +12.93
 Bond fundS 109.18 +0.10 +8.90
 Cash
 CDs 102.65 +0.06 +3.58
 MONEY FUNDS 101.86 +0.05 +2.52
 Other
 Real estate 98.55 0.00 -1.25
 Gold 140.90 -0.71 +30.77
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 25.80% 26.74% Bond funds 7.66% 6.25%
 ASE/OTC 8.15 8.45 CDs 12.69 14.73
 Equity funds 8.28 5.80 Money funds 23.76 23.50
 Taxable bonds 6.08 6.92 Real estate 0.89 0.76
 Municipals 6.04 6.35 Gold 0.64 0.49
 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- 10/4/93
 /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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CK -- NY066 -- 0890 10/01/93 14:27 EDT
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Date:Oct 1, 1993
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