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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS SUFFER BIGGEST LOSSES SINCE '90

 MONEY SMALL INVESTOR INDEX:
 SMALL INVESTORS SUFFER BIGGEST LOSSES SINCE '90
 /ADVANCE/ NEW YORK, Nov. 24 /PRNewswire/ -- As the Dow Jones Industrials fell by 130 points over the past week, individual investors suffered their biggest weekly losses since the market last bottomed on Oct. 11, 1990, according to Money magazine's Small Investor Index. Even so, they aggressively stepped up their purchases of stocks and equity funds.
 Last week, the Index, which tracks the typical individual's holdings, fell by 1.3 percent, or $605, to $46,426. Stocks lost $614, while bonds dropped $22. CDs and money funds contributed $18.
 Just as they did in 1990, small investors saw the drop as an opportunity to scoop up stocks at attractive prices. For example, on the Monday that followed the Dow's initial, 120-point plunge, individuals moved a net $37.5 million into stock funds managed by the Janus Group in Denver. That was more than double the previous one-day sales record of $17.6 million on Aug. 19, when Soviet hardliners staged their abortive coup and the Dow dropped 80 points.
 Similarly, customers of discount broker Charles Schwab have bought $130 million more stock than they have sold so far this month; by contrast, trading was even in October.
 Investment advisers fear that small investors may have bought too much too soon. "You shouldn't lead with your chin and buy as stocks are plunging, because you don't know where they are going to stop," says Lawrence Keblusek, director of investment counseling at Northern Trust in Chicago. He notes, however, that since the market seems to have stabilized, "now is a good time to buy."
 Keblusek says the Dow could drop to about 2800 by year-end but then rise to 3400 in '92, as President Bush stimulates the economy to improve his re-election chances and corporate profits recover.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 112.64 114.10 98.07 -1.29% +14.86%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 119.23 -4.26% +24.57%
 ASE/OTC 142.93 -4.42 +52.27
 Equity funds 121.78 -3.74 +26.35
 Bonds:
 Taxable bonds 111.13 -0.10 +12.97
 Municipals 110.32 -0.45 +10.01
 Bond funds 113.80 -0.22 +14.52
 Short-term assets:
 CDs 105.66 +0.10 +6.39
 Cash 104.71 +0.09 +5.29
 Other:
 Real estate 101.31 -0.23 +1.63
 Gold 100.33 +5.21 +2.84
 Dec. 28, 1990 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 20.11% 19.09% Bond funds 4.84% 4.19%
 ASE/OTC 6.35 6.03 CDs 19.45 21.97
 Equity funds 4.47 3.59 Cash 22.55 21.88
 Taxable bonds 16.53 17.19 Real estate 0.78 0.78
 Municipals 4.35 4.71 Gold 0.57 0.59
 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- 11/25/91
 /NOTES 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.
 -- Next week's Index will be released on Wednesday, Nov. 27, instead of Friday, Nov. 29, because of the Thanksgiving holiday./
 /CONTACT: Jordan Goodman of MONEY, 212-522-3618, or Patti Strauss of MONEY Public Relations, 212-522-2695/ CO: ST: IN: SU: ECO


GK -- NY058 -- 6469 11/22/91 15:14 EST
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Date:Nov 22, 1991
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