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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS EARN 4.2% IN FIRST HALF

 /ADVANCE/ NEW YORK, July 4 /PRNewswire/ -- As the economy slowed slightly in the first six months of 1993, the typical individual's investment holdings gained 4.2 percent, or $1,884, according to Money's Small Investor Index. That's equivalent to an 8.6 percent annual return, just below the 9 percent that investors have earned on average over the past 20 years.
 The surprise performer in the first half was gold, which far outshone all other major investments. The gold category of the Index, which includes both bullion and mining shares, rose 57 percent, chiefly because of growing demand in developing countries such as China. Although the category makes up less than 1 percent of the typical small investor's portfolio, it contributed profits of $123 for the period.
 Stocks -- 35.9 percent of the portfolio -- earned 4.5 percent, or $748. Large stocks returned 4.5 percent, while small-company shares gained 3.9 percent. Stock mutual funds were up 4.8 percent.
 Bonds, 24.5 percent of the portfolio, outpaced stocks, returning 6.9 percent, or $753. Growing investor sentiment that inflation will remain low, combined with the progress of President Clinton's plan to cut the federal budget deficit, has helped long-term interest rates fall to a 16-year low, thereby boosting bond prices.
 Cash -- 38.1 percent of the portfolio -- provided only 1.4 percent over the first six months, or $253. Annual yields on certificates of deposit and money-market funds have remained below 3 percent as the Federal Reserve has kept interest rates low to stimulate the economy.
 Last week, the Money Small Investor Index, which tracks the typical individual investor's portfolio, rose $272 to a record $46,738. Stocks gained $158, while bonds returned $87. CDs and money funds contributed $9, and gold kicked in $16.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 104.20 103.59 95.36 +0.59% +9.27%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 104.53 +0.57% +12.25%
 ASE/OTC 103.94 +2.16 +24.89
 Equity funds 104.77 +0.95 +13.08
 Bonds:
 Taxable bonds 106.70 +0.48 +10.67
 Municipals 107.22 +1.16 +11.79
 Bond funds 106.82 +0.77 +9.65
 Cash:
 CDs 101.78 +0.07 +3.70
 Money funds 101.25 +0.05 +2.66
 Other:
 Real estate 101.88 +0.26 -0.23
 Gold 156.89 +5.20 +40.99
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 21.42% 21.50% Bond funds 7.34% 6.33%
 ASE/OTC 6.76 6.79 CDs 13.52 16.24
 Equity funds 7.72 5.92 Money funds 24.55 24.32
 Taxable bonds 9.81 9.83 Real estate 0.84 0.79
 Municipals 7.34 7.75 Gold 0.69 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- 7/5/93
 /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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GK -- NY023 -- 8189 07/02/93 14:09 EDT
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Date:Jul 2, 1993
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