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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS GAIN SINCE CLINTON'S ELECTION

 /ADVANCE/ NEW YORK, Nov. 7 /PRNewswire/ -- Despite last week's market declines, Americans' investment portfolios have grown a robust 10 percent since Bill Clinton was elected president a year ago this week, according to Money magazine's Small Investor Index.
 Those 10 percent returns -- a full percentage point more than the 9 percent average annual return of the past 20 years -- defy the conventional wisdom that the election of a Democrat as president is a bad omen for the stock and bond markets. Still, investors did even better in the 12 months following Republican George Bush's 1988 presidential election victory, when the index gained 13.1 percent.
 Stocks, which make up 41.7 percent of the typical small investor's portfolio, accounted for most of the past year's gains, climbing 15.2 percent. Among stocks, small-company shares led the way with a 23.3 percent jump, outpacing blue chips' 12.4 percent rise.
 Bonds, 19.5 percent of the portfolio, earned 11.1 percent. "The principle objective of Clinton's economic plan was to reduce the deficit," says Hugh Johnson, chief investment officer at First Albany, a brokerage firm in Albany, N.Y. "As a result, we've had one humdinger of a decline in interest rates, which sent bond prices up." Tax-free municipals, returning 12.2 percent, outperformed taxable bonds, at 10.2 percent, as investors sought shelter from Clinton's tax increases.
 Gold rose a spectacular 57.5 percent. But at just 1 percent of the portfolio, the precious metal had little impact on the index's overall performance.
 Last week, the Money Small Investor Index, which tracks the typical individual's holdings, lost $427 to $50,112. Stocks dropped $417 for the week, while bonds lost $20. CDs and money funds added $9.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 106.85 107.76 97.33 -0.84% +9.78%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 107.49 -2.09% +12.43%
 ASE/OTC 111.86 -2.10 +23.32
 Equity funds 110.52 -1.51 +15.83
 Bonds:
 Taxable bonds 108.61 -0.78 +10.17
 Municipals 110.99 +0.71 +12.15
 Bond funds 109.36 -0.47 +10.88
 Cash:
 CDs 102.93 +0.06 +3.51
 Money funds 102.08 +0.04 +2.48
 Other:
 Real estate 101.41 -0.54 +1.85
 Gold 161.84 +1.08 +57.46
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 25.39% 26.24% Bond funds 7.62% 6.25%
 ASE/OTC 8.02 8.29 CDs 13.75 15.46
 Equity funds 8.32 6.02 Money funds 23.39 23.60
 Taxable bonds 5.98 6.79 Real estate 0.90 0.75
 Municipals 5.94 6.14 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- 11/8/93
 /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 5, 1993
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