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MONEY SMALL INVESTOR INDEX: SMALL INVESTORS PROSPER FROM CLINTON RALLY

 /ADVANCE/ NEW YORK, Jan. 24 /PRNewswire/ -- The typical American's investments have risen 3.4 percent since President Clinton's election, according to Money magazine's Small Investor Index. That 12-week gain, fueled mostly by strongly rebounding stocks, is equal to 15 percent at an annual rate -- six percentage points more than individual investors have earned, on average, since 1970.
 The Clinton rally stopped short of being a full-fledged bonanza for small investors only because they keep an average of 39.4 percent of their investments in low-yielding money-market funds and certificates of deposit. For the 12 weeks, money funds and CDs have earned less than 1 percent, or about 3 percent on an annual basis.
 Stocks, 36.6 percent of the typical individual's portfolio, returned 6.7 percent over the 12 weeks, or 32 percent at an annualized rate. The biggest gains came from shares of small companies, which have shot up 15.7 percent since the election.
 Bonds, 22.9 percent of the portfolio, gained 3.3 percent, or 15 percent at an annual rate. Because many high-income investors have been flocking to municipal bonds in anticipation of income tax hikes, munis have provided a 5.8 percent return, or 27.6 percent annually.
 Analysts say that the Clinton rally is likely to continue as long as the President's plan for spending to create new jobs doesn't boost the nation's annual deficit by more than $20 billion or so. A bigger increase, however, could push up interest rates and hurt both stocks and bonds, according to Hugh Johnson, chief investment officer at First Albany Corp.
 Last week, the typical individual investor's portfolio, as tracked by the Index, rose $139 to $45,135. Stocks gained $38, and bonds returned $88. CDs and money funds contributed $10, while gold added $2.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 100.58 100.27 94.46 +0.31% +6.48%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 100.04 -0.01% +8.13%
 ASE/OTC 103.52 +0.73 +12.51
 Equity funds 100.94 +0.53 +6.25
 Bonds:
 Taxable bonds 100.94 +0.40 +9.32
 Municipals 100.82 +1.81 +9.28
 Bond funds 100.72 +0.36 +7.89
 Cash:
 CDs 100.21 +0.07 +4.07
 Money funds 100.15 +0.05 +3.13
 Other:
 Real estate 100.41 +0.17 -9.43
 Gold 97.57 +1.13 -20.77
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 23.06% 23.53% Bond funds 6.53% 5.23%
 ASE/OTC 7.28 7.43 CDs 14.62 17.41
 Equity funds 6.29 5.09 Money funds 24.80 22.75
 Taxable bonds 8.80 9.88 Real estate 0.61 0.80
 Municipals 7.54 7.32 Gold 0.47 0.57
 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- 1/25/93
 /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:Jan 22, 1993
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