Printer Friendly

MONEY SMALL INVESTOR INDEX: SMALL INVESTORS SHOW SIGNS OF CAUTION

 /ADVANCE/ NEW YORK, Jan. 2 /PRNewswire/ -- Despite a year of record stock market highs, individuals earned a modest 8 percent on their investments last year, according to data gathered for Money magazine's Small Investor Index. The 1993 figure is a full percentage point below the 9 percent average annual return that investors have gotten since 1970.
 The index, which is designed to track the performance of the typical individual's investment portfolio, rose by $3,800 in 1993, to a record $51,000.
 With the Dow Jones industrial average and other market indicators hitting record highs in 1993, stocks (which make up the largest part of the portfolio at 43 percent) accounted for $1,200 of the increase in the index. Small company stocks climbed 13.5 percent, while larger blue- chip issues gained 10 percent.
 Bonds (18.9 percent of the portfolio) added $935, a rise of 10.4 percent. For the second year in a row, municipals outperformed taxable bonds (returning 10.2 percent vs. 9.5 percent), as investors concerned about the new tax hikes poured money into tax-exempt issues.
 But cash investments, including CDs and money funds (37 percent of the portfolio), dragged down returns, contributing just $510, a gain of 3.3 percent. The average yield on money funds, now 2.8 percent, ranged from 2.6 to 2.9 percent during the year.
 Gold outshone other investments, soaring 75 percent. Since the precious metal makes up less than 1 percent, however, that big jump added just $163 to the index. Real estate (excluding investors' own homes) was the only type of asset that lost money in 1993, falling about 1 percent. But because individuals keep less than 1 percent of their money in real estate investments, the impact was slight: a loss of $8.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 108.00 107.67 100.05 +0.31% +7.95%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 110.19 +0.87% +9.20%
 ASE/OTC 111.69 +0.07 +13.54
 Equity funds 112.04 +0.32 +12.11
 Bonds:
 Taxable bonds 109.42 +0.37 +9.50
 Municipals 111.73 -0.18 +11.84
 Bond funds 110.00 +0.30 +10.18
 Cash:
 CDs 103.39 +0.06 +3.46
 Money funds 102.38 +0.04 +2.43
 Other:
 Real estate 99.11 +0.13 -0.65
 Gold 173.98 +0.25 +74.91
 Jan. 1, 1993 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 26.32% 26.43% Bond funds 7.46% 6.41%
 ASE/OTC 8.31 8.35 CDs 13.41 15.12
 Equity funds 8.14 6.23 Money funds 23.34 23.28
 Taxable bonds 5.86 6.88 Real estate 0.85 0.75
 Municipals 5.59 6.10 Gold 0.71 0.45
 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- 1/3/94
 /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/


CO: ST: IN: SU: ECO

GK -- NY012 -- 8318 12/31/93 13:41 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:Dec 31, 1993
Words:598
Previous Article:KRELITZ INDUSTRIES, INC., DEFINITIVE ACQUISITION AGREEMENT SIGNED
Next Article:/FIRST AND FINAL ADD -- NY009 -- NEW YEAR'S EVE SURVEY/
Topics:

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