European Stars and Stripes (Newspaper) - September 08, 1985, Darmstadt, Hesse                                Page 18 the stars and stripes sunday september 6, 1985when to sell stocks associated press t he bulk of Stock Market advice by brokers relatives friends touts and  to buy because in buying Are the dreams commissions Glamor and  when do you sell and Why unless his advice has been Good your broker might be reluctant to advise unloading a Stock he urged you to buy. Relatives and trends lose interest during bad markets touts and tipsters Seldom concern themselves Wilh Selling. Sell because an Issue of equal Quality offers More gain prospects in the upside and apparently less risk on the  that advice is Rule no. 1 in the new investors Manua published by the National associations of investors Cor which has had 45 years experience developing and operating the country s investment club movement. This one Rule should account for 90 percent of All sell transactions by individual investors says Tom o Hara. Chairman of the Nail which has no axes to grind or commissions to earn its charter being non profit. O Hara says the manual is different from any others published its inform a taxi having been acquired and tested Over the years by thousands of investment clubs. Those procedures o Hara says have helped the mostly Amateur investment clubs beat the Standard 8. Poor s 500-Stock Index in 20 of the past 25 years. Investing As Little As $10 of $20 a month Many members have built portfolios in the hundreds of thousands of dollars and some even $ 1 million or More. The manual offered at $12 from the Nail. 1515 East 11 mile Road Royal Oak Mich. 48067. Has three Good rules Lor investing invest regularly in Good times and bad reinvest All earnings and invest in growth companies. Unique though Shote rules might be they Are perhaps matched in value by the rarity in investment books thai is. Some sound objective rules to guide investors when they suspect ii is time to sell. A second reason to consider Selling the manual mtg Yort to twi holding a Jutt at positive an action at buying or ailing of debut the in Witon manual. Points out is when Adverse management changes Are made. You might also consider Selling when profit margins Are declining or the financial Structure of a company is deteriorating. Some other times to consider Selling when direct or indirect Competition is affecting the Prosperity of a company. When a company has great dependence on a single product whose Cycle is running out. The list is Long but no More important than the list of illegitimate reasons for Selling. Do not for example sell a Stock merely because the Price has t moved. Don t sell a Stock because the Price is less than you paid Tor it. And Don t sell a Stock because of temporary bad news. Don t Tell Jutt because you Are tired of doing nothing advises the manual explaining that the Stock Market in t something that necessarily jumps around like some brokers would like you to believe. Based on those decades of experience the Nail offers the advice that owning growth securities Over a Long period of time is Likely to produce better results than attempting to switch in and out of securities. It advises that patience based on knowledge and analysis can be the investor s greatest  in fact it continues when growth stocks dip As they sometimes do it May be better to buy More shares expressing Confidence that the Long term trend eventually will adjust prices higher. Investors get used to seeing the words buy and sell especially from brokers but the Nail offers this Gem of advice holding is just As positive an action As buying or  Rise in mortgage delinquencies financing a House gets tougher associated press Home mortgage rates have fallen and the various Index sol afford ability have improved but it still will be harder for Many families to buy Homes later this year. The reason a Rise in mortgage delinquencies has made Many lenders wary especially of those seeking to buy Homes with very Low Down payments. The delinquency Rise has t been what statisticians would Call dramatic but the in thousands of Homes sea Sonny afr to Vert slow upward creep of the numbers has put some of them into record High territory. And other statistics Are giving off signals. Those signals have been sufficiently Strong for the Federal National mortgage association to raise its standards on Loans made with Down payments of 10 percent or less. And those standards Are Likely to be adopted by others. Under the new rules a Borrower s monthly housing expenses cannot exceed 25 percent of Gross monthly income and hotting expenses plus instalment debt cannot go higher than 33 percent. The old Standard of 28 percent and 36 percent respectively still applies to Home Loans made with larger Down payments. In spite of the mortgage association s action the concern in t shared universally. In fact William o Connell president of the . League of savings institutions has issued a statement seeking to downplay the Issue. There is no significant increase in residential mortgage payments 60 Days or More delinquent at the nation s savings  said o Connall this he said is contrary to the misconceptions created by other reports. One of those reports the from the mortgage Bankers association of America which surveyed 9.28 million Loans in the first Quarter of the year and found a 6.19 percent delinquency rate highest since records were begun in 1953. Thai percentage which represents a moderately Sharp increase irom 5.47 percent six months earlier in the third Quarter of 1984, includes All Loans 30 Days or More overdue a time period that o Connell feels is too Brief. Circumstances May result in a Borrower forgetting or being unable to make a payment on time Lor one month but the True test of mounting delinquencies would be an increases in Loans 60 Days or More past due he said. That s not happening he added. The . League s own Survey showed a delinquency rate of 1.82 percent for june up from 1.68 percent in May but nevertheless the second lowest monthly rate this year. In january its Survey showed a 2.22 percent rate. The league s Survey differs in methodology irom that of the mortgage banker s. It is based on Loans overdue 60 Days or More Rath than ust 30 Days. And unlike the mortgage banker Survey whose percentages Are based on the number of delinquencies the league s figures Are based on Dollar amounts. If a 60-Day Standard were used the mortgage banker Survey would show a delinquency rate of 1.98 percent not greatly different from Tho league s findings but still higher than a 1.78 percent Reading a year earlier