MONEY SMALL INVESTOR INDEX: INVESTORS' BULL-MARKET PROFITS TOP 40 PCT.
/ADVANCE/ NEW YORK, Nov. 21 /PRNewswire/ -- The typical individual investor has earned 40.7 percent on his investments during the record- smashing three-year bull market that pushed the Dow Jones industrial average to close above 3700 last week, according to Money magazine's Small Investor Index. The average investor's portfolio now stands at $50,289, up $14,558 since the Dow bottomed out at 2365 in October 1990 amid the Persian Gulf crisis. The 37-month rally represents the market's longest run ever without a setback of 10 percent or more. The stock portion of the average small investor's portfolio grew by $9,294, or 83.7 percent, during the period. Bonds added $2,835, or 39.4 percent. CDs, money-market funds and other cash investments chipped in $2,371, a 13.8 percent gain. Helping sustain the stock rally, investors have shifted billions of dollars to equities as CD interest rates have fallen from 6 percent to below 3 percent over the past three years. The stock portion of the typical portfolio now stands at 41.6 percent, up from 29.3 percent in October 1990, while the cash portion has plunged to 37.4 percent from 48.3 percent. Some market analysts believe the rally will continue as long as cash investments continue to offer relatively poor payouts. "It would take CD yields of more than 6 percent before small investors would be tempted to get out of stocks," says William Lefevre, the senior market analyst at the New York City brokerage Ehrenkrantz King Nussbaum. "Since I think that is unlikely anytime soon, I expect the Dow to hit 4000 by the end of 1994." Last week, the Money Small Investor Index, which tracks the typical individual's holdings, lost $119 to $50,289. Stocks dropped $122, while bonds returned $5. CDs and money funds added $9 and gold lost $7. This Last Year % Change from a Week Week Ago Week Ago Year ago 107.22 107.48 98.18 -0.24% +9.21% Latest Changes for Each Asset % change from a Category Index Week Ago Year Ago Stocks NYSE 109.09 +0.27% +12.54% ASE/OTC 111.43 -3.16 +18.13 Equity funds 111.09 -0.70 +14.51 Bonds Taxable Bonds 108.78 +0.13 +10.04 Municipals 109.21 -0.01 +9.89 Bond funds 109.39 +0.05 +10.66 Cash CDs 103.06 +0.06 +3.50 MONEY FUNDS 102.16 +0.04 +2.47 Other Real estate 99.91 -1.04 +0.30 Gold 165.671 -2.02 +70.54 Jan. 1, 1993 equals 100 Where Average Small Investors Have Their Money Now Current Year Ago Current Year Ago NYSE 25.31% 26.31% Bond funds 7.60% 6.26% ASE/OTC 7.99 8.31 CDs 13.66 15.43 Equity funds 8.29 6.03 Money funds 23.69 23.50 Taxable bonds 5.96 6.81 Real estate 0.87 0.75 Municipals 5.92 6.16 Gold 0.70 0.45 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- 11/22/93 /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:||Nov 19, 1993|
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