Dow hits new high as interest rates fall


As interest rates fell further yesterday, income-hungry investors pushed stocks to a new record closing level. The Dow Jones industrial average burst through its recently set peak to reach a new high at 3,567.70, ahead 20.96 points for the busy day.

WALL STREET WISDOM: "The only thing that gives me pleasure is to see my dividends coming in." (John D. Rockefeller, 1901) . . . "Repeatedly in the stock market I have sold a stock while it was rising -- and that has been one reason why I have held onto my fortune." (Bernard Baruch, 1957.) . . . "With an evening coat and a white tie, even a stockbroker can gain a reputation for being civilized." (Oscar Wilde, 1891.)

HOPEFULLY HELPFUL: "Beware of bogus home-mortgage companies that claim to have taken over your loan. Incidents of fraud are rising as imposters' stationery and messages appear legitimate. Do not forward payment if: (1) You have not received letters from both the old and new lenders explaining the change, (2) There's no 800 number to call for verification, or (3) You're asked to send a money order or bank check. If in doubt, call your original lender." (Brian Chappelle, v.p., Mortgage Bankers Association.)

MARYLAND MEMOS: Myron Oppenheimer, investment chief, Security Trust/Maryland National Bank, says, "We currently feel that too many investors are expecting the results from the 1980s to be repeated in the 1990s. We do not feel this will be the case. We further feel that tax-free municipal bonds make more sense than ever at this point in the economic and interest rate cycles." (Phone Mr. Oppenheimer's office, 244-6569, for the bank's complete "Investment Review, Summer Issue," with charts and graphs) . . . Martin Marietta, the Bethesda-based design, manufacturing and systems integration firm, split its stock two for one and raised the dividend. The stock, which closed last week at 81 1/8 , sold as low as 50 1/8 during the last 12 months. The firm has raised its dividend in each of the last 10 years . . . BG&E; is included under "Utility Portfolio for Steady Dividend Stream" in S&P; Outlook, July 21.

GOOD ADVICE: Barron's, July 23-29, on newsstands this week, runs a helpful story on bond portfolio management. Excerpt: "We often ladder maturities over one to seven years. That way we would have something coming due next year, which we could leap-frog out seven years. And then with something coming due the following year, we would take that money out another seven years. That way we find we can move up or down slowly with an interest rate cycle. We won't get caught. And the strategy gives a big enough return to stay ahead of inflation." (Robert Meredith, bond manager, Meredith, Martin & Kaye.)

TRAVEL TIP: "Always keep some lights on when you leave your hotel room. If the lights are off when you return, close the door immediately and ask at the front desk for an escort to your room." ("More Power To You! The Personal Protection Handbook for Women" by Samantha Kourmanelis, $12.95)

HAPPY NEWS: "Salespeople with a yen to change jobs have a window of opportunity this summer. Demand for sales representatives is hot, especially among retailers and wholesalers," says a survey of 820 firms by The Executive Compensation Service, Fort Lee, N.J., reported in National Business Employment Weekly, July 23-29 issue on newsstands this week. Excerpts: "One out of two retailers and wholesalers plan to beef up their sales forces by year-end . . . Competition for sales reps is fierce among banking, finance and services as well, with one-third expecting to hire more sales reps in 1993 . . . More firms now allow sales reps to use company cars for personal business than four years ago."

LOOKING AHEAD: "We are about halfway through a bull market in stocks. It started in late 1990 and may end about the start of 1996. In time I will become a bear again, but the time is not yet." (Kenneth Fisher, money manager, in Forbes, Aug. 2) . . . "Almost without exception, the old pros of the investment newsletter game are bearish." (Mark Hulbert, editor of Hulbert Financial Digest, a financial newsletter compendium) . . . "Foreign stocks have been stellar performers this year and the rally has only just begun." (Kenneth Gregory, editor, No-Load Analyst) . . . Regarding the above quote, R. S. Salomon, Jr., chairman of Salomon Bros. Asset Management, Inc., recommends purchase of these European stocks: Cable & Wireless, Dresdner, L. M. Ericsson, Repsol S.A., Aegon and Hanson Plc. . . . "The market is pushing into resistance toward Dow Jones 3,600. Broader measures are struggling and distribution signs are moving into negative territory." (Market Strategies)

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