IBM helps propel Dow to record high

THE BALTIMORE SUN

The Dow Jones industrial average burst through its previous high yesterday and set a closing record. Powered by strong economic reports and helped by point-plus gains in IBM and International Paper, the blue-chip indicator climbed 12.02 points, to finish at 3,692.61, an all-time peak.

WALL STREET WISDOM: "Remember, my son, that any man who is a bear on the future of this country will go broke." (J. Pierpont Morgan, 1908) . . . "Buy cheap, sell dear." (Thomas Lodge, 1595) . . . "You can't expect to hit the jackpot if you don't put a few nickels in the machine." (Flip Wilson, 1971)

BALTIMORE BEAT: The cover story of Fortune, Nov. 15, "The Best Cities for Business," excludes Baltimore from the "best" but describes us as follows: "A highly skilled work force and extensive research facilities are strong attractions. Johns Hopkins helps medical companies with cheap office space and technical advice. But executives gripe about crime and poor public schools." Raleigh/Durham, N.C., New York, Boston and Seattle lead the list of "best cities" . . . U.S. Surgical stock, widely held here and down 63 percent this year, and Baltimore-based Merry-Go-Round Enterprises, off 46 percent since Jan. 1, are listed under "Battered and Bruised: Beware of Quicksand While Tracking the Losers" in the Wall Street Journal, Oct. 26 . . . Business Week, Oct. 11, lists T. Rowe Price's New Asia Fund and its Science and Technology Fund under "The Best Mutual Fund Returns."

MARYLAND MEMOS: Two stocks with local connections, CSX Corp. and Mid-Atlantic Medical, touched 12-month highs in recent trading . . . At noon Nov. 11 at the Hyatt Regency Hotel, Baltimore Security Analysts Society holds a meeting titled "Unprincipled Accounting Principles: New Standards, Old Tricks," with guest speaker Jack T. Ciesielski, CPA . . . For details on how to buy local stocks with a 50 percent discount on commissions, call Ronald or Harold Peremel, (410) 486-4700. The program is called "Take Stock in Maryland" . . . The top insured 2 1/2 -year CD rates locally are now at Eastern Savings, Equitable Federal Savings (Wheaton) and Chevy Chase Savings. (Data from "100 Highest Yields") . . . Phone Dean Witter's Rick Faby (547-7000) for his firm's "Higher Tax-free Bond Prices Could Still be Reached, But Don't Expect a Repeat of the Summer Rally" . . . "If you want to make a substantial gift to charity with an irrevocable commitment, contributing your assets to a charitable remainder trust now may yield greater benefits than if you make the contribution in your will." (Mercantile Safe Deposit & Trust Co.)

AUTUMN LEAVES: AT&T;, Telefonos de Mexico, Prizer, Philip Morris and BankAmerica are all listed under "Why Growth and Value Investors Like Some of the Same Stocks" in Fortune, Nov. 1 . . . Money magazine, November, describes PEC Israel Economic and Teva Pharmaceutical as "least risky" of Israeli investments in a story titled "Shifting to Lofty Profits on the Wings of Peace" . . . "Are you being eaten alive by taxes?" asks Kenneth Fisher in Forbes, Oct. 18. He answers: "Try a time-proven strategy used by many of the Forbes 400 richest people: 'Buy carefully, sell seldom and wait' " . . . "Selling Life Insurance to the Elderly" in Consumer Reports, November, makes worthwhile reading. ("The pitches are persuasive, but even at pennies a day most of these policies are atrocious buys.")

HOPEFULLY HELPFUL: "U.S. savings bonds now pay higher annual yields than any other low-risk, liquid investment. Currently, savings bonds pay 4 percent, compared to tax-free money funds (3.3 percent), one-year CDs (3 percent), three-month Treasury bills (2.91 percent) and money funds (2.6 percent.) Catch: savings bonds must be held for at least six months before being redeemed." (Norman Fosdick, editor, "Income and Safety") . . . "An index fund invests in the collection of stocks that are found in broad-based market indexes, such as the S&P; 500, S&P; Mid-Cap, Russell 2000 and Wilshire 5000. As a result, its performance will mirror that of the index." ("The No-Load Fund Investor") . . . "Some new books that belong in your financial library are 'The Ultimate Credit Book,' by Gerri Detweiler, $10, phone (800) 255-0899 to order; 'Bogle on Mutual Funds; New Perspectives for the Intelligent Investor,' by John Bogle, $25; 'Loving Trust: The Right Way to Provide for Yourself and Guarantee the Future of Your Loved Ones,' by Robert Esperti, $21.95." (Money, November)

LOOKING AHEAD: About 65 percent of the comment I recently read was optimistic. Following is a cross-section, in the proportion received: "There's no doubt about it -- the latest edition of the quarterly Barron's Big Money Poll finds institutional portfolio managers in a distinctly upbeat mood about stocks. Most fund managers think equities will gain more ground before 1993 is through, and then extend the rally right through to the end of 1994." (Barron's, Nov. 1, in a cover story, "The Big Money Grows More Bullish") . . . "Major market trend is still bullish. Institutional cash levels are declining but ample." (Lehman Bros. Technical Analysis) . . . "The stock market has become very frothy, overbought and is displaying the classic signs of a bull market that is ending." (Global Market Strategist) . . . "U.S. stock market still offers plenty of opportunity. The combination of low, stable inflation and low interest rates has historically [and currently] been extremely positive for the valuation of financial assets." (Prudential Securities Portfolio Comments) . . . "The bears keep coming on with strong arguments that the bull market is about over, yet it keeps snorting right along." (Laszlo Birinyi, financial consultant)

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