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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS UP 59 PERCENT SINCE '87 CRASH

 MONEY SMALL INVESTOR INDEX: SMALL INVESTORS UP 59 PERCENT
 SINCE '87 CRASH
 /ADVANCE/NEW YORK, Oct. 18 /PRNewswire/ -- In the five years since Black Monday, Oct. 19, 1987, when the Dow Jones Industrial Average plunged 508 points, Americans have earned a healthy 59 percent on their investments, according to Money magazine's Small Investor Index.
 That's 9.7 percent at an average annual rate, or slightly better than the 8.9 percent average for the past two decades.
 Even measuring overall returns from the stock market peak two months before the crash, individuals have enjoyed 44 percent gains -- or an average of 7.3 percent a year.
 Since the crash, stocks and equity mutual funds have returned 82 percent. New York Stock Exchange issues, with average profits of 97 percent, have greatly outpaced over-the-counter stocks, which are up 72 percent.
 Over the same period, bonds have posted a 61 percent total return. Individual issues, with a 65 percent return, have beaten bond funds, which have earned 48 percent.
 Cash investments, such as certificates of deposit and money-market funds, turned in a solid 35 percent profit. CDs gained 40 percent, vs. 30 percent for money funds.
 The only loser over the past five years has been gold, down 39 percent. The other inflation hedge in the Index, real estate investments aside from homes, grew by an average of 2 percent a year.
 Immediately after the crash, small investors trimmed stocks from 39.4 percent to 31.3 percent of their total portfolios and moved heavily into cash and bonds. Since 1988, however, they have built up their stock holdings. As a result, individuals now have 34.9 percent in stocks, 24.4 percent in bonds and 39.6 percent in cash investments such as CDs and money funds.
 Last week, the typical portfolio tracked by the Index rose $87 to $46,386. Stocks gained $97, while bonds lost $13. CDs and money funds chipped in $11.
 This Last Year % change from a
 week week ago Week ago Year ago
 104.02 103.83 97.47 +0.19 +6.73
 Latest Changes for Each Asset
 % change from a
 Category Index Week ago Year ago
 Stocks
 NYSE 103.60 +0.54 +7.72
 ASE/OTC 103.46 +0.83 +7.90
 Equity funds 102.63 +0.56 +5.68
 Bonds
 Taxable bonds 107.09 -0.31 +11.64
 Municipals 106.83 +0.29 +9.56
 Bond funds 106.20 -0.26 +9.64
 Cash
 CDs 103.43 +0.07 +4.46
 Money funds 102.74 +0.05 +3.64
 Other
 Real estate 93.15 +0.50 -8.97
 Gold 86.75 -4.06 -15.14
 Dec. 27, 1991 equals 100
 Where Average Small Investors Have Their Money Now
 (In percents)
 Current Year ago Current Year ago
 NYSE 22.04 23.08 Bond funds 6.27 4.95
 ASE/OTC 6.96 7.29 CDs 15.06 18.08
 Equity funds 5.86 4.62 Money funds 24.56 22.05
 Taxable bonds 10.77 11.24 Real estate 0.62 0.76
 Municipals 7.39 7.38 Gold 0.50 0.56
 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- 10/19/92
 /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/ CO: ST: IN: SU: ECO


CK -- NY067 -- 1168 10/16/92 17:32 EDT
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Date:Oct 16, 1992
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