Printer Friendly

MONEY SMALL INVESTOR INDEX: SMALL INVESTORS TAKE BIGGER RISKS

 /ADVANCE/ NEW YORK, Dec. 20 /PRNewswire/ -- Amid rising optimism that President-elect Bill Clinton will preside over a rebounding economy, small investors are rushing into high-risk stock and bond mutual funds, according to data gathered for Money magazine's Small Investor Index.
 Since the election, the Money/ABC News Consumer Comfort Index has soared 14 points to its highest level since July 1991. That growing consumer confidence is apparently encouraging investors to take risks.
 Over the past six weeks, for instance, small investors have added a net $3.2 billion to aggressive stock funds, more than six times as much as they contributed during the previous six-week period, according to AMG Data Services of Arcata, Calif.
 Individuals also are pouring money into volatile funds that focus on specific industries. The Financial Strategic Leisure Fund, for instance, has taken in $46.6 million since the election, compared with only $4 million in September and October.
 Similarly, small investors are moving into the most aggressive bond funds. After redeeming a net $1.4 billion from junk bond funds in October, they added the entire amount back during the past six weeks.
 Most analysts say that if investors can afford to take moderate risks, they are smart to put as much as 25 percent of their money into such investments. "Junk bonds with yields of 9 percent or more are compensating investors well for their extra risk," says Jeffrey Shames, chief investment strategist at Massachusetts Financial Services in Boston. "And small companies are going to have higher earnings growth next year than blue chips, so their stocks could rise more."
 Last week, the typical individual's portfolio, as tracked by the Index, rose $44 to a record $47,859. Stocks gained $18, while bonds returned $9. CDs and money funds contributed $11, and gold added $6.
 This Last Year % Change from a
 Week Week Ago Week Ago Year Ago
 107.32 107.23 97.88 +0.09% +9.65%
 Latest Changes for Each Asset
 % Change from a
 Category Index Week Ago Year Ago
 Stocks:
 NYSE 110.75 +0.21% +17.29%
 ASE/OTC 117.73 -0.07 +23.18
 Equity funds 109.72 -0.04 +15.06
 Bonds:
 Taxable bonds 107.38 +0.13 +8.35
 Municipals 108.64 +0.10 +9.46
 Bond funds 106.46 -0.01 +7.47
 Cash:
 CDs 104.08 +0.07 +4.17
 Money funds 103.19 +0.05 +3.28
 Other:
 Real estate 91.17 -0.20 -8.51
 Gold 86.04 +2.88 -13.96
 Dec. 27, 1991 equals 100
 Where Average Small Investors Have Their Money Now
 Current Year Ago Current Year Ago
 NYSE 21.87% 22.87% Bond funds 6.45% 5.17%
 ASE/OTC 6.91 7.22 CDs 14.61 17.62
 Equity funds 5.96 4.99 Money funds 24.90 22.36
 Taxable bonds 10.69 11.14 Real estate 0.79 0.76
 Municipals 7.33 7.32 Gold 0.48 0.54
 Sources: Bank Rate Monitor, the Federal Reserve, IBC/Donoghue's Money Fund Report, Investment Company Institute, Lehman Bros., Lipper Analytical Services, Merrill Lynch, Morgan Stanley Capital International, National Association of Real Estate Investment Trusts, Prudential Asset Management, Standard & Poor's, Robert Stanger & Co., World Gold Council.
 -0- 12/21/92
 /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 -- NY085 -- 8418 12/18/92 17:01 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 18, 1992
Words:601
Previous Article:KING WORLD ANNOUNCES STOCK REPURCHASE PROGRAM
Next Article:DARTMOUTH COLLEGE YIELDS TO PRESSURE FROM HYDRO-QUEBEC'S OPPONENTS; WHERE A CAMPAIGN OF DIS-INFORMATION CAN LEAD
Topics:


Related Articles
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS CHASE RISKY JUNK BONDS
MONEY SMALL INVESTOR INDEX: INVESTORS TURN ON TO 6% UTILITIES
MONEY SMALL INVESTOR INDEX: INVESTORS RACK UP BEST PROFITS OF '92
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS MAKE ONLY 7.9% IN 1992
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS PROSPER FROM CLINTON RALLY
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS BET ON SMALL STOCKS
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS RACE FOR REAL ESTATE
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS PLAY IT SAFE
/REPEATING FROM FRIDAY, JUNE 4/
MONEY SMALL INVESTOR INDEX: SMALL INVESTORS TIPTOE INTO HEALTH CARE

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