Skidding for the second day in a row, the Dow Jones average gave up 19 points yesterday, closing at 3,365.14. Since the Summer Olympics in Seoul, South Korea, in September 1988, the Dow is up about 1,200 points, or 55 percent.
LOOKING AHEAD: "Odds still favor our perfect scenario of lower inflation, lower interest rates and increasing demand for stocks. This places a major top far away." (Crosscurrents) . . . . . . "Just because the market fluctuates doesn't mean it is getting better or safer." (Mamis Guide) . . . "On July 9 our Primary Trend Index scored a record high, telling me that bullish forces are still overpowering the bears. Fight it if you wish but in 21 years I've learned that to fight the PTI is a way of losing money." (Dow Theory's Richard Russell)
BALTIMORE BEAT: T. Rowe Price is mentioned under "Mutual Fund Management Favorites" in Investor's Digest, July, and the firm's Capital Appreciation Fund is listed favorably under "Riding Out a Bear Market" in Morningstar's Mutual Fund Rating Service . . . Tomorrow night, locally produced "Wall Street Week with Louis Rukeyser" spotlights "The Emerging Asian Markets" with guest Robert Lloyd George and panelists Ralph Acampora, Martin Zweig and Mr. Ticker . . . The latest "100 Highest Yields" says the top area CD yields are at Custom Savings, Eastern Savings and Maryland National Bank.
MARYLAND MEMOS: Myron Oppenheimer, investment chief, Security Trust-Maryland National Bank (244-6590), will mail his firm's latest Strategy Update if you phone. Excerpts: "As we move toward election in an uncertain economic recovery, a rising stock market is definitely not assured. . . . Be sure to ask about call features before purchasing any bond; it's very important, especially if rates drop farther." . . . B.G.& E., Delmarva Power & Light and Washington Gas Light stocks appeared in 12-month new high listings earlier this week . . . "Gifts to charitable organizations may eliminate capital gains taxes and donors may receive immediate income tax deductions."
EDITORIAL: Barron's Business and Financial Weekly, dated Aug. 3, headlines a cover story, "Warren Buffett Buys Into General Dynamics," and the story begins, "The master stock picker who heads Berkshire Hathaway last month bought a 15 percent stake in General Dynamics, acquiring a 4.3 million-share position worth $338 million." Several people, knowing of Mr. Buffett's stock selection genius, have asked me, "Should I buy some General Dynamics, too?" My response was an emphatic no. The reason is that if Mr. Buffet changes his mind, he may sell all of his General Dynamics stock as quickly as he bought it -- without telling anybody -- and holders could be left holding the bag.
MIDSUMMER NOTES: If you had invested $10,000 one year ago as follows, here's your current scorecard: In Treasury bonds $12,112; U.S. stocks $11,143; money market funds $10,375; gold $9,871; foreign stocks $9,601. (Data from Business Week, Aug. 10) . . . "With savings interest rates at 30-year lows, many banks are promoting long-term CDs to keep their customers' money in the vault. But remember that if inflation rises to 4 percent or more, long CDs could return less than you lose to inflation and taxes." (Business Week, Aug. 3) . . . McCormick stock is written up favorably in Financial World, Aug. 4. ("This investment could smell as sweet as the company's clove-scented annual report.") . . . "Since sizzling to a 49.7 percent gain in 1991, the S.& P. MidCap index has fizzled out. Year to date, the MidCap has underperformed the sluggish S.& P. 500 by minus 2 percent." (Smith Barney via Rick Faby) . . . Newest "Wish List" of Our Daily Bread, Cathedral at Franklin streets, includes iced tea mix, #10 cans of vegetables, plastic sandwich bags, sugar, jelly, peanut butter. Closest light-rail stop: Howard & Centre streets . . . "When traveling abroad in the next few months, use foreign currency traveler's checks to save money." (Travel Smart) . . . "Most top students don't succeed in the 'real world.' " (Boston College study)