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MONEY SMALL INVESTOR INDEX: AMERICANS SNAP UP FOREIGN STOCKS

 MONEY SMALL INVESTOR INDEX: AMERICANS SNAP UP FOREIGN STOCKS
 /ADVANCE/ NEW YORK, Sept. 20 /PRNewswire/ -- With Europe's financial markets in turmoil last week, individual U.S. investors wisely dumped foreign bonds and continued to buy foreign stock funds aggressively, according to data gathered for Money's Small Investor Index.
 Since the beginning of the year, Americans have moved billions of dollars overseas. In the past nine months, they have added more than $5 billion of fresh cash to foreign stock funds and nearly $4 billion to foreign bond funds, which pay as much as 9 percent.
 The cash flow has slowed dramatically since Sept. 1, however, as the dollar has risen in value against other major currencies, causing losses for most foreign bond funds. For example, the $780 million Fidelity Short-Term World Income Fund, yielding 8 percent, suffered a sharp 2 percent loss this month. As a result, the fund has taken in only $5 million of new money so far in September, down from $175 million in August.
 However, because many foreign stocks are depressed, individuals have reacted to the overseas chaos by loading up on foreign equity funds. For instance, the T. Rowe Price International Stock Fund has attracted $22 million so far in September and is now the firm's best-selling stock fund.
 International market analysts think U.S. investors are making smart moves. "The dollar will probably continue to strengthen over the next few weeks, which would hurt international bond funds," says Mark Richardson, the chief investment officer at Chase Manhattan's private bank. "But for the long term, European stocks are much better values than American shares."
 Last week, Money magazine's Small Investor Index, which tracks the value of the average individual investor's portfolio, rose $17 to $45,918. Stocks gained $46, while bonds lost $48. Certificates of deposit and money-market funds contributed $11.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 104.79 104.75 96.54 +0.04% +8.54%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 106.01 +0.05% +11.69%
 ASE/OTC 105.10 +1.13 +12.46
 Equity funds 104.49 +0.15 +9.43
 Bonds:
 Taxable bonds 107.35 -0.22 +12.78
 Municipals 107.37 -0.84 +11.17
 Bond funds 106.87 -0.37 +11.57
 Cash:
 CDs 103.15 +0.07 +4.62
 Money funds 102.52 +0.06 +3.79
 Other:
 Real estate 93.44 -0.26 -9.23
 Gold 93.29 +4.02 -4.56
 Dec. 27, 1991 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 22.16% 21.85% Bond funds 6.19% 4.93%
 ASE/OTC 7.00 6.90 CDs 15.03 18.55
 Equity funds 5.79 4.55 Money funds 24.16 22.36
 Taxable bonds 11.49 12.25 Real estate 0.78 0.78
 Municipals 6.89 7.27 Gold 0.52 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- 9/21/92
 /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


GK -- NY060 -- 1195 09/18/92 14:24 EDT
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Date:Sep 18, 1992
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