European Stars And Stripes (Newspaper) - April 27, 1985, Darmstadt, Hesse                                April 1985 the stars and stripes Money matters the Stock Market just How risky is if with the Dow Jones Industrial average skyrocketing in the first few weeks of Many investment advisers who had urged extreme caution several weeks earlier suddenly jumped on the Bull predicting that the Dow could hit possibly by the end of the Why the optimism All of a sudden because experts of All including Large institutional now seem to agree that the Economy should continue to grow moderately this inflation should remain at a Low 4 to 5 and Short term interest Down markedly since last Are Likely to stay put for a prices should remain stable and unemployment relatively at those Are the predictions floating above there will be no recession this predicts Harold chairman emeritus of echoing the optimism of Many most american individuals and companies have plenty of Money to and Confidence is relatively whats when people who have been a towing their savings into Money Market funds and High yielding Bank accounts realize that yields on such accounts Are falling at least some of this Money should be shifted into the Stock where there Are real values what does All this mean to you if you agree that things Are looking and if you have some Money you can risk and forget about for quite a while now May be a Good time for you to think about buying of that any time you put your Money into the you stand to lose no matter what anyone so be sure to put the bulk of your investment dollars into several of the High yielding investments listed begin to build a Stock portfolio designed to grow steadily Over the years to what Are today mos favored stocks each analyst has his or her top there Are certain groups of stocks that most expert expect to do Well in for when inflation is Low and people have More Money to stocks of businesses offering Leisure and entertainment usually do so do those of retail when stores spend More on it Means that magazines and to among reap the Peppy Saffron a vice president of Shearson mentions some other Stock groups that look Good at the time of this writing utilities should Benefit from lower interest As will brokerage insurance  and other financial she also sees the housing Industry and particularly Mobil Home healthcare firms and defens related industries among those Likely to do Well in the near if you plan to act on Henins or anyone else Stock remember that the key to protecting your investment is to that Means not Only that you should not put All your Money in one you  put it All in one some other ways to minimize your risks never count on Quick by buying and Selling youll rack up huge brokerage by the time individual investors hear hot the big boys have already acted on whats expected to happen has dont invest All your Money at buy in when the markets going Down As Well As some experts advise investing a fixed amount each to assure a steady buildup of your and also to help counteract Market some brokerage houses offer plans specifically designed for Small investors who wish to do even with the Purchase of one if you 100 shares of a and the Price buy More of it at the lower your breakeven Point will then be select stocks that pay High and preferably those that have paid dividends consistently for Many in Good and bad that even if your Stock int moving up youll at least be getting a decent return on the Money that sitting consider the following plan advocated by John a senior vice president of Shearson american who Calls it a Boring Way to get every once in a spend some time with Standard poors Stock guide sometimes available free from and perhaps at your look for companies that have a great Deal of Little or no Lon term that pay and that have assets at least 2v4 times greater than if you find stocks that fulfil these criteria and that Are near the Low end of their usual Price buy such Spooner never go up or Down Over he  outperform other consider not picking your own stocks at but rather investing in an alternative investment vehicle Mutual future Shock the fallout from tax Reform no one can expect to escape fhe Impact of the changes theres no question about in whatever form it eventually tax re form will affect Al of us the government argues by Simp form proposals Are pretty property tax deductions would be the amount of mortgage interest you could deduct on a second for would be sharply As if that we rent the amount you could depreciate on that prop erty each year would also though experts predict its unlikely that All or even most of the the tax system will become More and most americans will Actu ally pay less in the Way it looks right some sort of modified Flat tax will probably be is what that Means is that the current 16 tax brackets will probably be come and instead of the top tax bracket remaining at 50 it will be lowered to 35 the implications of a Flat tax to in some sort of modified Flat tax will probably be established vectors Are right for if you were in the 50 percent tax each of deductions you had would be Worth a tax savings of 50 if your tax bracket were suddenly to become 35 the same one Dollar in deductions would save you Only 35 with a modified deductions of All types Are Worth so ate tax free heres an example lets say you were in the 50 percent tax bracket and you bought a tax exempt Bond that pays 10 with the tax system the Way it is that Bond would give you an actual return of 20 if your tax rate were to drop to 35 the actual return on the Bond would be Only for people who own second or others investing in real estate for rental in come or other current Tare Market share total As of in billions of dollars self directed 1984 billion life insurance companies Mutual savings Banks credit unions 35 30 Mutual funds 16 individual retirement accounts commercial Banks savings Loans 1980 cute ago Tribune graphic sources internal Revenue service investment company Institute Ira reporter Sals will at the very least it is Likely that the number of years in which you Are allowed to depreciate real estate will in meaning lower deductions each of if youre in a lower tax that like All will be Worth less to there of lots of other proposals which the Treasury department an the rest of us have to wait and see what bounced last among those that have sent Shivers up the spines of millions of taxpayers whether there investors or not Are these eliminating state and local income tax deductions Mario Cuomo has estimated that this will Cost the average new York taxpayer who itemizes deductions about a eliminating deductions for state sales taxes currently percent in new limiting deductions for interest on consumer Loans and credit card Pur chases lowering deductions for charitable contributions this is one proposal very Likely to be dropped from the Treasury taxing employee fringe benefits limiting business entertainment and travel allowances and ending the two earner de among will these proposals become Law some Many probably will but while the White Congress and special interest lobbyists Battle it out in Washington this the rest of us have to wait and see what in the meantime and at the very least consider what would happen to the return on your investments if your tax bracket were to be