Printer Friendly

MONEY SMALL INVESTOR INDEX: SMALL INVESTORS HOLD MOST STOCKS SINCE '87

 /ADVANCE/ NEW YORK, April 4 /PRNewswire/ -- Small investors currently have 38 percent of their money in stocks and equity mutual funds, the highest percentage since just before the October 1987 stock market crash, according to Money magazine's Small Investor Index.
 Four years ago, in the wake of the crash, individuals had cut their equity holdings to only 30 percent of their investments. Since then, as interest rates have fallen, small investors have gradually built up their equity holdings by shifting cash from money-market funds and certificates of deposit. Today, cash investments make up only 37 percent of the typical individual's portfolio, vs. 45 percent immediately after the crash.
 The move from cash to stock is continuing to fuel strong sales at equity mutual funds. Net sales of such funds amounted to $10.9 billion in March, slightly exceeding February's total, according to AMG Data Services of Arcata, Calif. For example, assets at the $417 million Dreyfus Growth & Income Fund rose $33 million in March on the heels of a $26 million increase in February.
 Many economists think cash will keep moving heavily into stocks for at least six more months. "Consumers still hold $3 trillion in low- yielding, short-term investments," says economist Nancy Lazar of brokerage ISI in New York City. Eventually, however, the inflows will subside. "The amount of cash people hold is relatively low when you compare it with their debts and other investments," explains Charles Biderman, editor of Individual Investor Trim Tabs newsletter in Santa Rosa, Calif. As a result, he expects stock prices to weaken by year- end.
 Last week, the Index, which tracks the typical portfolio's value, rose $32 to $47,427. Stocks gained $22, and bonds lost $5. CDs and money funds contributed $10 and gold chipped in $6.
 This Last Year Pct. change from a
 week week ago week ago year ago
 102.57 102.50 93.61 +0.07 +9.57
 Latest Changes for Each Asset
 Pct. change from a
 Category Index week ago year ago
 Stocks
 NYSE 104.05 -0.10 +15.79
 ASE/OTC 101.43 +0.83 +15.63
 Equity funds 103.15 +0.12 +11.55
 Bonds
 Taxable bonds 103.87 -0.19 +12.14
 Municipals 103.47 +0.16 +11.68
 Bond funds 103.80 -0.04 +10.41
 Cash
 CDs 100.90 +0.07 +3.93
 Money funds 100.63 +0.05 +2.88
 Other
 Real estate 101.30 -0.18 -6.37
 Gold 118.01 +2.49 +6.61
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year ago Current Year ago
 NYSE 23.45 pct 22.39 pct Bond funds 6.84 pct 5.60 pct
 ASE/OTC 7.41 7.07 CDs 13.60 16.82
 Equity funds 6.72 5.42 Money funds 23.83 23.96
 Taxable bonds 9.50 10.04 Real estate 0.80 0.77
 Municipals 7.30 7.39 Gold 0.53 0.52
 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- 4/5/93
 /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/


CK -- NY063 -- 2667 04/02/93 16:46 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 2, 1993
Words:595
Previous Article:BREAKTHROUGH INFORMATION SERVICE DELIVERS NASDAQ COMPANY NEWS BY FAX
Next Article:PARTNERS OIL COMPANY ANNOUNCES RESULTS
Topics:


Related Articles
MONEY SMALL INVESTOR INDEX: AMERICANS SLASH CONTRIBUTIONS TO IRAS
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS TAKE PROFITS ON ENERGY STOCKS
MONEY SMALL INVESTOR INDEX: DEPOSITORS LIKELY TO PULL BILLIONS OUT OF CDS
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS GAIN SINCE CLINTON'S ELECTION
SMALL INVESTORS SHOW SIGNS OF CAUTION
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS SHOW SIGNS OF CAUTION
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS FLEE UTILITY FUNDS
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS SOUR ON HIGH-TECH
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS SURGE INTO UTILITIES
MONEY SMALL INVESTOR INDEX: INVESTORS BOOST STOCKHOLDINGS 54%

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters