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'THE HONEYMOON IS OVER': SAVVY INDIVIDUAL INVESTORS RESPOND TO FIRST 100 DAYS

 QUICK & REILLY 500 SPRING SURVEY SHOWS 51 PERCENT OF INVESTORS
 DISAPPROVE OF CLINTON'S ECONOMIC PERFORMANCE
 NEW YORK, April 14 /PRNewswire/ -- As the first 100 days of the Clinton presidency draw to a close, the nation's most sophisticated individual investors say they disapprove of the Clinton administration's economic performance to date and predict that they will be personally worse off one year from now.
 In a dramatic reversal from three months ago, the fourth quarterly Quick & Reilly 500 survey finds that individual investors are markedly less enthusiastic about the impact of the new administration's economic policies on the state of the economy, the market, and their own pocketbooks -- with 51 percent expressing disapproval of Clinton's recent economic performance, and 44 percent voicing concern about their personal situation. As a result, the Index of investor sentiment, the 500 Survey's principal barometer, dropped 12 percent back to 50, from a high of 57 just last quarter.
 Mr. Thomas C. Quick, president of Quick & Reilly, Inc. said, "On the eve of the President's inauguration, our investors were optimistic that a sharp directional shift would benefit the economy, the market and their individual situations. Now that details of the administration's economic package are clear -- and have been met with Congressional gridlock -- our investors appear uncertain as to whether the course charted is viable, or even wise. It seems that they have thrown a cautionary flag that the President as well as Congress should not ignore."
 Skepticism is apparent throughout the 500 Survey findings. In January, most investors seemed willing to give the new President a chance to prove himself and his policies. Some 80 days later, 75 percent of investors assert that the economy is experiencing average or worse than average growth, and 62 percent are more cautious about investing (up from 32 percent). In keeping with this trend, 44 percent believe that the stock market will fall (in contrast to the Winter Survey where 51 percent anticipated a rise) and 55 percent expect interest rates to rise during the next three months. What's more, 87 percent of investors anticipate that interest rates will rise during the next two years.
 Despite their caution, sophisticated investors remain active in the market -- with 62 percent indicating that they had bought or sold stocks during the past quarter. Moreover, although some investors (26 percent) say that they will increase their 1993 use of tax-free or tax-deferred vehicles, fully 68 percent plan to maintain their current approach to taxable investment. Among the most popular investment vehicles for tax reductions in 1993 are: employer sponsored 401(k) plans (34 percent), municipal bonds (29 percent), IRAs (28 percent) and interest deduction on personal property (23 percent).
 Although the majority of savvy investors do not expect a tax refund this year, of those who do, re-investment of their refund dollars is the most popular alternative.
 Other major findings of the Quick & Reilly 500 include:
 Investor Sentiment
 -- The number of investors describing themselves as "Bulls" dropped to 31 percent from 52 percent three months ago. The number describing themselves as "Bears" increased to 26 percent from 17 percent.
 -- Regarding the U.S. economy as a whole: 39 percent believe the nation is experiencing worse than average growth, 36 percent see average growth, and 19 percent of savvy investors continue to believe that the economy is in recession. Only 5 percent of these investors believe the economy is experiencing better than average growth.
 -- Predictions about stock market performance have dropped noticeably:
 During the next three months, 44 percent of investors expect the market to fall either moderately (5 percent) or sharply (39 percent); 29 percent expect the market to persist at current levels; and 25 percent anticipate a rise. In the last Survey, fully 51 percent expected a rise while only 17 percent anticipated a fall.
 During the next year, 52 percent of investors expect the market to rise either moderately (50 percent) or sharply (2 percent); 18 percent expect the market to persist at current levels; and 29 percent anticipate a fall. In the last Survey, 64 percent expected a rise while only 18 percent anticipated a fall.
 Clinton Administration -- Economic Report Card
 -- Fifty-one percent of savvy investors disapprove either moderately (23 percent) or strongly (28 percent) of the new Administration's economic performance to date. Thirty-one percent somewhat approve and only 13 percent strongly approve.
 -- Regarding the impact of the Administration's economic policies on personal situations: 44 percent expect to be worse off (up from 22 percent three months ago), 45 percent about the same (down from 57 percent), and 10 percent better off (down from 19 percent).
 Investment Behavior
 -- Sixty-two percent of investors bought or sold stocks during the last three months, down from 69 percent last quarter. Of those who have made transactions, 41 percent have bought more than they have sold and 26 percent have sold more than they have purchased.
 -- Growth stocks were a favorite. Of those investors who indicate that they have been conducting transactions, 56 percent say that they have been buying these types of stocks during the past three months. Twenty-eight percent selected income stocks and 17 percent preferred cyclicals.
 Regional Differences
 -- Northeastern investors are the most pessimistic about the economy, with only 29 percent describing themselves as "Bulls" (as compared with 60 percent in January) while a significant number (27 percent) believe that the U.S. remains in a recession.
 -- Westerners are also pessimistic, with only 36 percent describing themselves as "Bulls" (as compared with 53 percent in January). Although only 19 percent describe the economy as in a recession, investors in this region are not very optimistic about future prospects, with 43 percent believing that the economy is experiencing worse than average growth. Thirty-six percent of Westerners (more than any other regional group) have also sold more stocks than they have purchased.
 -- In contrast, investors in the South and Midwest are slightly more optimistic than their Northeastern and Western peers, with 39 and 44 percent, respectively, indicating that the economy is experiencing average growth.
 Gender Differences
 -- Women (37 percent) are more likely than men (16 percent) to feel that the economy is in recession, and have therefore been less active participants (40 percent) in the market than their male counterparts (66 percent).
 The Quick & Reilly 500 is compiled from the results of a survey conducted among investor clients of Quick & Reilly, Inc. The Wirthlin Group interviewed 500 individuals nationwide between April 2 and 5. Sample error for a group of this size is plus or minus 4.5 percent, at the 95 percent confidence level.
 Quick & Reilly, Inc. was the first New York Stock Exchange (NYSE) member firm to offer discounted commissions to the nation's most sophisticated individual investors. Headquartered in New York, Quick & Reilly, Inc. services its clients through 81 offices in every major city across the country.
 Quick & Reilly Group, Inc. is also the holding company for U.S. Clearing Corp., which provides clearing and execution services for brokerage and banking firms; and JJC Specialist Corp., which makes markets in the stocks of more than 120 NYSE listed companies.
 -0- 4/14/93
 /CONTACT: Thomas C. Quick, president of Quick & Reilly, 212-747-4840; or Jill E. Posnick of Hill and Knowlton, 212-697-5600, for Quick & Reilly/


CO: Quick & Reilly, Inc. ST: New York IN: FIN SU: ECO

GK -- NY020 -- 5571 04/14/93 09:39 EDT
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Date:Apr 14, 1993
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