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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS TAKE PROFITS ON ENERGY STOCKS

 /ADVANCE/ NEW YORK, June 13 /PRNewswire/ -- As political leaders in Washington haggled over President Clinton's proposed energy tax, small investors pulled millions of dollars in profits out of mutual funds that hold oil and gas stocks, according to data gathered for Money's Small Investor Index.
 Thanks largely to the unusually cold winter, which pushed up natural gas prices 30 percent, energy funds have returned 22 percent so far this year. That's made them the second-best performing U.S. stock group after gold funds, according to Lipper Analytical Services in New York City.
 As the energy-tax debate heated up in late April, however, individual investors, fearing that such a tax would hurt oil and gas company profits, began selling energy funds. For example, they have pulled a net $36.3 million out of Fidelity's Select Energy fund. Altogether, energy funds have had withdrawals of a net $113 million over the past six weeks, according to AMG Data Services of Arcata, Calif. By contrast, in the previous six weeks, investors added a net $105 million to the funds.
 Most energy analysts say that investors are sensible to take profits in energy funds, which hold a lot of vulnerable natural gas stocks. "The rise in natural gas prices has gone too far, too fast to be sustainable," says analyst Bryan Dutt at Howard Weil in New Orleans. Longer-term, however, he believes that "gas stocks will benefit from limited domestic production and growing demand." He also notes that if President Clinton's proposed BTU tax is scrapped in favor of a tax on gasoline and other transportation fuels, natural gas will benefit.
 Last week, the Index, which tracks the typical individual's holdings, declined $371 to $47,744. Stocks fell $316, while bonds lost $54. CDs and money funds contributed $10. Gold dropped $11.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 103.25 104.05 94.60 -0.77% +9.13%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 103.58 -1.50% +12.10%
 ASE/OTC 101.64 -2.57 +21.20
 Equity funds 103.74 -1.66 +12.12
 Bonds:
 Taxable bonds 105.24 -0.11 +11.25
 Municipals 105.49 -1.28 +11.72
 Bond funds 105.34 -0.12 +9.97
 Cash:
 CDs 101.58 +0.07 +3.75
 Money funds 101.11 +0.05 +2.71
 Other:
 Real estate 101.36 +0.02 -1.79
 Gold 141.56 -3.45 +26.52
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 23.27% 22.38% Bond funds 7.01% 5.97%
 ASE/OTC 7.35 7.07 CDs 13.27 16.28
 Equity funds 7.09 5.56 Money funds 23.90 24.02
 Taxable bonds 9.43 10.03 Real estate 0.82 0.78
 Municipals 7.24 7.39 Gold 0.62 0.53
 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- 6/14/93
 /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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Date:Jun 11, 1993
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