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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS GAIN 67 PERCENT SINCE EVE OF '87 CRASH

 /ADVANCE/ NEW YORK, Oct. 17 /PRNewswire/ -- In the six years since right before the crash of October 1987, the average individual's portfolio has risen 67 percent, or an average of 8.9 percent a year, according to Money magazine's Small Investor Index.
 Over the past six years, bonds have been the best-performing asset, climbing 83.4 percent, or an average of 10.6 percent a year. Bond prices have soared as yields on long-term issues have plunged from about 10 percent to below 6 percent today. Stocks have gained 75.7 percent, or an average of 9.9 percent over the same time period. That's also roughly the average return for stocks since 1970. Cash, which encompasses CDs and money funds, provided a 38.8 percent return, or 5.6 percent a year. Real estate rose only 26 percent. The worst performer: gold, which fell 17.6 percent.
 Since the crash, small investors have shifted their money among stocks, bonds and cash dramatically. In the summer of '87, investors had as much as 39.4 percent of their portfolios in stocks. The equity share dropped to 31.3 percent in October 1988, but it has since rebounded to 42.2 percent. "People learned that if they have good-quality stocks, they will ultimately rebound. It just doesn't pay to be a panic seller," says Robert Stovall, president of Stovall/21st Advisors in New York City.
 Conversely, investors' cash holdings rose from 40 percent before the crash to 44.4 percent in October 1988. Since then, low yields have prompted investors to trim their cash investments to only 36.4 percent of the average portfolio.
 Last week, the Money Small Investor Index, which tracks the typical individual's holdings, rose $470 to a record $50,091. Stocks gained $370, while bonds returned $48. CDs and money funds added $9 and gold rose $15.
 This Last Year % Change from a
 Week Week Ago Week Ago Year ago
 108.05 107.03 96.00 +0.95% +12.55%
 Latest Changes For Each Asset
 % change from a
 Category Index Week Ago Year Ago
 Stocks
 NYSE 109.52 +1.69% +17.25%
 ASE/OTC 116.02 +3.01 +35.73
 Equity funds 112.64 +1.45 +21.32
 Bonds
 Taxable Bonds 109.86 +0.49 +10.71
 Municipals 112.19 +0.47 +14.63
 Bond funds 110.32 +0.50 +11.17
 Cash
 CDs 102.78 +0.06 +3.57
 MONEY FUNDS 101.94 +0.04 +2.51
 Other
 Real estate 102.19 +0.14 +2.84
 Gold 155.40 +4.56 +50.61
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 25.79% 26.75% Bond funds 7.66% 6.25%
 ASE/OTC 8.14 8.45 CDs 12.65 14.67
 Equity funds 8.28 5.80 Money funds 23.77 23.67
 Taxable bonds 6.08 6.92 Real estate 0.91 0.77
 Municipals 6.04 6.26 Gold 0.69 0.47
 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- 10/18/93
 /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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CK -- NY058 -- 2804 10/15/93 14:35 EDT
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Date:Oct 15, 1993
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