Experts see bumpy days ahead, but suggest long-term courage


AS AUTUMN NEARS, here's some advice for short-term and long-pull investors:

"Short-term, hang on. We forecast a bumpy 30-day ride on the 'Stock Market Express.' Hold tight and fear not the coming sharp swings in stock prices." (Russ Kaplan's Heartland Adviser.)

"The bull market has three good months left, but October won't be one of them. Stocks will hit bottom Oct. 10-18. New highs lie ahead for November-December." (McClellan Report.)

"More volatility lies ahead, underlining the importance of quality stock selection and taking less risk." (Goldman Sachs Strategy.)

"Long-term, we're sticking with Dow 6,000. If interest rates behave, this is too low. We're in an election year, and we see decent growth and no inflation." (Todd Market Timer.)

"One safe haven in a market decline -- if it comes from economic troubles, not inflation -- is the bond market. Bonds can provide guaranteed income, capital gains or a combination of both." (Rex Rehfeld, Baltimore office, Gruntal & Co.)

LOCAL BARGAIN? Black & Decker is among "Six Bargain-Priced Stocks That Could Return 33 Percent," in Money, October. "B&D; isn't relying on cost-cutting alone. The company has become a machine for new products," the magazine says.

RATHER HAVE CDs? "When shopping for high-interest, out-of-state CDs, Bank Rate Monitor advises: Call 800-555-1212 to see if the bank of your choice has a toll-free number. Only speak to the person in charge of national consumer accounts." (Consumer's Digest, October.)

CASH FOR COLLEGE: "Many families are discovering that a college's first financial aid offer may not be its last. Many schools will sweeten aid packages for students they really want if a student or family makes a reasonable case that additional support is warranted." (U.S. News & World Report, Sept. 23, in "The Art of Negotiating.")

BALTIMORE & BEYOND: Legg Mason's Gerald Scheinker will send his firm's "Utility Income Buy List" if you call 486-8010.

For the leaflet, "Could You Benefit From a Variable Annuity?" call Harry B. Gorfine & Co. at 539-5474.

Southwest Airlines appears under "Midcap Stocks for Long-Term Capital Appreciation" in S&P; Outlook, Sept. 18.

"Companies are raising their dividends at a blistering pace. So far this year, 1,303 firms boosted payouts vs. 1,130 hikes at the same point in 1995." (Kiplinger's Magazine, October.)

"During the July market turndown, only 8 percent of investors sold stocks, 24 percent bought and 70 percent just hung on." (Business Week, Sept. 23.)

"In investing, the return you want should depend on whether you want to eat well or sleep well." (1996 Stock Trader's Almanac.)

Pub Date: 9/20/96

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