Modestly adding to Friday's 58-point gain, the Dow Jones industrial average edged up 9.09 points yesterday and closed at 3,937.73. When Wall Street opened this morning the closely watched Dow index stood 344 points above its 12-month low and only 16 points below its 52-week high.
AND NOW WHERE? "It's 'blah' for most stocks in 1995. Rising earnings and rising interest rates will offset each other, leading to a flat market." (James Chanos, manager, Kynikos Associates, the nation's largest "short-selling" firm) .... "The biggest bull market of our lives looks as if it's getting ready to start charging forward again in 1995." (Louis Rukeyser, in his February newsletter, "Wall Street.")
"Back in 1989 I predicted the Dow would hit 5,000 by 1995; I still hope that will come true, and I feel 4,750 is a distinct possibility." (Carmine Grigoli, investment strategist, Nomura Securities) .... "Buy when the cannons are thundering; sell when the violins are playing." (Famous financier N. M. Rothschild, 1810)
BALTIMORE BITS: Baltimore stands No. 17 in a list titled "How 24 U.S. Cities' Stocks Ranked by Investment Returns," in Money, February issue. Baltimore stocks were down 3.5 percent in 1994 vs. their 1993 gain of 13.8 percent over the previous year. Chicago stocks led the 1994 list, up 7.4 percent, while San Diego ran last, minus 9.6 percent.
T. Rowe Price International Stock Fund appears under "Best Mutual Fund Buys" in Forbes, Feb. 13, and the firm's Science & Technology Fund is listed under "The Top Performers" in Business Week's Feb. 6 cover story, "The Best Mutual Funds." ..... Stocks of Alex. Brown, Information Resources and Waverly reached 12-month highs in recent trading; Times Mirror slipped to a yearly low.
MIDWINTER MEMOS: PaineWebber's Marvin Fribush will mail his firm's "Defined Asset Funds: Investing In The 10 Highest Yielding Stocks," if you phone him at (410) 576-3220 .... "In May 1995, the Treasury Dept. will begin charging an annual account maintenance fee of $25 on each Treasury Direct Account exceeding $100,000 in total holdings." (Treasury Dept. footnote on recent customer statements)
"In a recent poll, 32 percent of the people didn't know that mortgage interest is tax-deductible." (Survey Research Group, Media, Pa.) .... "Sign of the Times: This year, McDonald's will open twice as many fast-food eateries overseas as in the U.S." (CNN News) .... "Most companies have no rules about employee dating, but the ones that do reserve the right to kick you out the door." (Money, February)
EXPERTS' PICKS: (cont'd): Here are more 1995 selections of top-performing stock pickers for 1994 on "Wall Street Week With Louis Rukeyser." James Grant, who scored an overall profit of 19 percent, mostly on short sales: "I would buy Campbell Resources, Grant Geophysical and CNA Financial. I would sell these 'short' because I feel they will decline: StrataCom, Parametric Technology, PeopleSoft, Adaptec, Micro Warehouse, Landry's Seafood Restaurants."
Laszlo Birinyi, whose selections last year were up 18 percent: "I would buy CBS, Executive Risk, Great Central Mines, Latin America Equity Fund, Petersburg Long Distance, Swiss Reinsurance warrants, Time Warner. I would 'short' Cascade Communications, FORE Systems, MicroTouch, Spectran, Williams-Sonoma."
WOMAN'S ANGLE: "Recommended Reading: 'The Beardstown Ladies' Common Sense Investment Guide.' (Hyperion Press, $19.95). This book contains down-to-earth advice on forming an investment club. The 'ladies' are 16 Illinois women (average age 63) who have walloped the stock market since 1983, averaging a 23 percent annual return. Rubbermaid, for example, caught their fancy because it had a double-digit growth record and made 'products that we know and use.' " (U.S. News & World Report, Jan. 23). Most libraries have copies.
NOTES & QUOTES: "Old men are always advising young men to save money. That is bad advice. Don't save every nickel. Invest in yourself, your education and your future. I never saved a dollar until I was 40 years old." (Henry Ford) .... "Been thinking about buying a vacation or retirement home in Mexico? Buy now or kick yourself later." (Forbes, Feb. 13.)
"The 5-year Treasury note is the single best buy in the bond arena." (William Gross, money manager, who just bought $5 billion (!) of the notes for the Pacific Investment Management Fund he manages) .... "Cost of a one-minute TV spot on the first Super Bowl in 1967: $85,000; cost of a 30-second spot this year: $1.2 million." (U.S. News & World Report, Jan. 30) .... "Stocks of U.S. companies with strong positions in Europe, such as AMP and Illinois Tool Works, will do especially well this year." (Elizabeth Bramwell, manager, Bramwell Growth Fund)