Dow index down 6 to 3,645, but still ahead 10.4% in 1993


Edging lower most of the day, the Dow Jones industrial average slipped 6.15 points yesterday and closed at 3,645.10. But at the closing bell the Dow indicator still stood 344 points, or 10.4 percent, above its New Year's Day level.

MONEY TALKS: "To speculate in Wall Street when you are not an insider is like buying cows by candlelight." (Daniel Drew) . . . "Money can't buy happiness, but it can buy you the kind of misery you prefer." (Hobart Brown). . . "Most people plan their vacations better than they plan their finances." (Mary Kay Ash.)

SEPTEMBER SONGS: Local stocks that reached new 12-month highs earlier this week include Baltimore Gas and Electric, Bell Atlantic (parent of C&P; Telephone), Chesapeake Utilities, MBNA former credit-card unit of Maryland National Bank) and PHH Corp. . . . "The three biggest industries in the United States today are, in order, automobiles, supermarkets and tourism." ("60 Minutes.") . . . A reader writes: "Did you realize that in 1981 two-year Treasury notes yielded 16 percent and the Dow Jones average stood at about 800, whereas today two-year T-Notes bring about 4 percent and the Dow average is above 3,600?" . . . Business Week, Sept. 6, advises, "When buying tax-free bonds, shop around for the best bid, stick to large, nationally recognized names and check a bond's liquidity and call provisions."

MONEY SAVERS: Money magazine, September, runs a helpful article, "How to Get Great Discounts Just For The Asking." Excerpts: "When renting a car, arrange to pick it up at an airport whenever possible. When you arrive, go to the desks of several rental agencies, including the one with whom you've made your reservation, and ask them to beat the price you've been quoted. Nine out of 10 times you get a better deal." . . . "Ask your travel agent, 'Do you have any last-minute specials?' Often cruise lines will alert travel agents when they have a few empty spaces and offer the last slots at a substantial discount."

NOTES & QUOTES: Tax Hotline, September, says, "Higher taxes are definitely coming, but there are ways to save on taxes, namely (1) Accelerate income into 1993 (rates will be higher next year); (2) Check your withholding to avoid stiff underpayment penalties; (3) Contribute the legal maximum to retirement plans; (4) Shift from income investments to capital gains investments; vTC (5) Consider tax-free bonds and mutual funds." . . . The latest Kiplinger Washington Letter says that mortgage rate trends generally follow rates on 10-year Treasury bonds, a better indicator historically than rates on 30-year T-bonds.

BALTIMORE & BEYOND: "In the past five years the shares of no-load fund operator T. Rowe Price Associates have more than tripled." (Forbes, Sept. 13, in an article on mutual fund operators) . . Legg Mason is also written up in the same issue of Forbes. ("Even as a young man, Chip Mason preferred value stocks to hot stocks and on that philosophy he built Legg Mason into a model of stability in a volatile industry.") Speaking of Legg Mason, the firm (539-3400) will mail a new buy recommendation on Bristol-Myers Squibb. ("We like the stock for superior yield, attractive valuation, high quality and excellent long-term growth potential.") AND NOW WHERE? In a shift, 70 percent of recent comment appears bullish. Samples from both sides: "Wall of worry? Pessimism? Where? We don't see it. All we see from last week's action is a rapid swing from complacency to extreme bullish sentiment. Peaks such as this one in the past have corresponded with an immediate and sharp decline, but as long as money continues to be thrown at stock funds, the bear cycle cannot begin." (HD Brous Crosscurrents) . . . "Stocks will rise further, with growth stocks regaining their luster and cyclicals losing ground as the economy softens and taxes rise." (Business Cycle Monitor) . . . "There's no weakness in this market. This

full-grown bull market has the strength to run much further. Keep your money invested in the best-performing businesses in this country." (Cabot Market Letter) . . . "It's a mistake to call this a healthy rise -- healthy it is not, but 'rise' it truly is. It does not, as yet, appear to be done, but it does look increasingly speculative." (Justin Mamis) . . . "We are in the final stages of a bull market. Later this year or early next year a bear market should arrive." (Ripples In The Wave) . . . "Is there risk of a market decline? Certainly. Any time, a 10 percent correction might strike Wall Street, but any correction will only be temporary, for all of our market indicators are now bullish." (Cabot Market Letter.)

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