European Stars And Stripes (Newspaper) - May 4, 1987, Darmstadt, Hesse                                Monday May 4, 1987 the stars and stripes Page 5 Dollar near Bottom experts agree major investors plan changes in strategy strategist at Merrill Lynch & co., predicted that the Best investments would new York. Not the Dollar has fallen More than 40 percent Over the last to years and Many investment strategists think in could soon hit Bottom. If so experts say investors should consider changing the strategies they used White the Dollar was heading Down. I think the Dollar is in its climactic stages mid Barton m. Biggs chairman of Morgan Stanley asset management. Biggs predicted that the Dollar after falling into a Range of about 135 Japa Nese yen and 1.75 German Marks will be in Tor a period of  the Dollar is currently trading at about 140 yen and 1.80 Marks a weak Dobar especially the free fall ing Dollar that the markets Nave seen Over the last few weeks hurts two Basic res of investment Bonds and stocks because it lends to drive up interest rotes. When rates Rise prices on out standing Bondi drop to maintain their yield. And Dock prices can weaken As Money Market investments become increasingly competitive. Furthermore some investors May flee american markets for investments in countries when the currencies Are stronger and More stable. Such invest ment have become More easily accessible through the proliferation of Mutual funds that invest overseas. Investment strategists differ widely Over How to invest when the Dollar s fall finally ends. But there Are some significant areas of agreement. Almost unanimously lie advisers predict that the Bond markets would be the primary Ben Trade weighted Dollar Index 1980-62 average Ico  Trahm a Fife by Kurti Boffl gunk Pajgin Ruml Tut Eficia Ries of a stabilized or slightly firming Dollar because those markets have suffered the most As the Dollar has plummeted in recent weeks. Biggs recommended buying such fixed income investment As mortgage backed securities and tax exempt Muni Cipal Bonds arguing that these have been hit the hardest and thus could expect the biggest rebound. Charles i. Clough chief investment be government Bonds especially Zero Coupon issues and the longer maturity the Betler since you will get the most Bounce up for your  but Clough said he would shy away from corporate Bonds since he expects a very sluggish or even mildly recessionary Economy and poor corporate profits in the Wake of a stable Dollar. While James n. Von germ clan presi Dent of the Boston co., Money manager for More than $16 billion in funds also agreed that the Best Short term returns might be in Bonds he argued that the Bond Market will rebound very quickly and that you will want to shift your funds to stocks because Bonds will have snapped Back and regained most of their recent  he and others recommended Stock that Are particularly sensitive to interest rate fluctuations such As savings an loan associations insurance companies and Banks whose earnings usually suffer when rates Rise. But disagreeing with Clough von Germeten predicted renewed economic growth in the Wake of a firmer Dollar and said that investor should look at cyclical stocks such As air lines and Auto. As for other Stock Market investments Stanley Salvigsen chairman of coms Tock partners inc., a newly formed in vestment advisory firm has taken a somewhat contrary approach. Eve when the Dollar begins to strengthen he said those companies that have been helped by its precipitous fall such As Export oriented concerns will continue Lobene fit for some Lime to come. It s a concept i Call my afterglow effect he said. The benefits of a major directional move stay with you for a while and you la continue to see Good earnings from these  thus Salvigsen recommended some Basic Industry stocks including alumni num producers Forest products Compa Nies Small technology companies Small manufacturers and machinery makers who got their brains beaten in when the Dollar was i  he predicted that these companies will continue to show goo earnings. Several of the advisers suggested pull ing Back on most overseas investments As the Dollar firms against other Curren cies because foreign companies could begin to falter. But David Testa chairman of the $2,5 billion to Rowe Price International fund said there is still Money to be made from foreign investments. He said that the primary reason for the powerful performance of european Stock markets is the underlying financial strength of their corporate sectors rather than cur Rency fluctuations. Even if the Dollar hits Bottom would not do anything differently Testa said. He contended thai the Busi Ness environment in Europe is More conducive to profitability for Well run companies than that in the United slates. Ii link too much is made of the currency fluctuation and too Little of inc Market fundamentals he said. Pentagon will probe overcharges papers say 1ij m. Cluro ctr two act 1 i Fol. _. ,. _ Washington apr Pentagon auditors concerned about the possibility of massive overcharging by the nation s largest defense contractors Are launch ing an inquiry into contractors Billing practices according to � Knight Kidder newspapers report. The defense contract audit Agency will write to 300 of the country s largest defense companies ibis week to a that their accounting systems and records will be reviewed to Check for possible excess  said saturday. Phillip e. Rogers a top Pentagon auditor said the investigation was planned after two smaller surveys revealed that eight major contractors May have claimed hundreds of millions of dollars in excess prof its Knight Ridder reported. Away from contracts that Are Over budget to others wit More leeway. The numbers were significant Rogers was quoted if a contractor is overrunning one contract he can saying. I would i go so far As to say that the shift the costs to another where he s und Minning Tennial is in the billions but it s in the hundreds of and make them even out to maximize his profit "  it hundreds millions just on the ones we looked  Pentagon auditors believe the problems Are linked to contractors widespread use of Complex computerized accounting systems through which they May have billed the government for Cost overruns on some contracts double filled for spare parts and inflated prices according to the Story. Companies Are allowed to Transfer certain costs Between contracts thus enabling them to funnel expenses William a. Gobbi who supervises Audi inns in Tri Agency s Atlanta office you fill up All of the buckets so that none of them overflow the computerized systems also have been used to charge the government for the production of More spare parts than it orders and then Bill the Pentagon a second time when it purchases the extra parts produced under the first contract according to Rogers. Misprinted stamp brings $ 143,000 Sands of Lime. New York a one of the most famous mistakes in postal history a 1918 stamp that shows an upside Down Curliss Jenny biplane sold sat urday for s 143,000 at auction. The sump was purchased by an Anonymous buyer who had bid by mail according to George Amick a Trenton no newspaper editor who recently wrote a Book about the Jenny Stamps. Only 100 of the 24-cent air Mai Stamps were sold Back in 1918 All to the same collector before the error of the inverted plane was corrected. Ninety six of them Are known to re main. Bidding at the auction started at j 100,000, Amick said. In addition to the $130,000 Selling Price the buyer must pay a 10 percent Premium to the auction House the Rob Ert a. Siegel auction gallery bringing the total cosi of the stamp to $ 143,000. The $130,000 bid Price was slightly higher than the Catalon Price of $ ii 5,000 but was Well below the record $ 198,000paid fora Jenny stamp in 1982. The highest Price Ever paid for a stamp at auction was $935,000 for a one cent 1656 British Guiana stamp. Distress Call apparently phony san Diego a the coast guard and Navy searched the Pacific Pecan near Here saturday after receiving a distress message purportedly from a soviet submarine but called off the search after finding no evidence that the message was genuine officials said. The coast guard received a radio Call at 7 s4 . Claiming to be from a soviet submarine called the Dresna via chief warrant officer Charles Hanjen said. The caller claimed that the submarine had Tost Power and was taking on water 70 Miles Southwest of san Diego. Searchers failed to find any sign of a vessel in distress and a soviet Intelli gence ship in the area said it knew Ono ships in trouble a Navy spokesman said. He said there is no soviet ship with the name dres Navia. The . Navy closely Monitor movements of All soviet naval vessels in the Pacific the spokesman said. The Navy knows of no soviet sub marines currently operating anywhere near san Diego or san Clemente  the Navy and coast guard both investigated the report of a submarine in trouble and no distressed vessels of any description were found he said. Joining in the search from the Navy were the aircraft Carrier Enterprise another ships. The coast guard Force included a search plane a helicopter and the 65 foot Culter Point Stuart. Bob Wittes a port of san Diego employee said he heard the original Dis Tress Call in which a Man with a heavily accented voice said this is a soviet submarine. We Are taking on Wai Erand request  making false distress Calls is a Viola Tion of Federal communication com Mission rules authorities said. In the stars and stripes 40 years ago today. May 4 1947 Jet Pilot won the 73rd running of the Kentucky Derby Al historic Churchill Downs in Louisville ky., claim ing the Winner s purse of $92,160. 30 years ago today. May 4, 1957 sen. Joseph r. Mccarthy 47, died of acute hepatitis at be Thesda naval Hospital. The controversial senator had led investigations of communism in the Early 1950s. 20 years ago today. May 4, 1967 Gen. Earle 0, Wheeler chairman of the joint chiefs of staff said defense Secretary Robert Mcnamara was increasing the risk of accidental nuclear War by refusing deployment of an Anli ballistic missile system. 10 years ago  4, 1977 Singer poet Rod Mckunn joined he growing dude county fla., homosexual rights controversy calling Singer Anita Bryant a Ginny Orang sced spreading bigotry through out the land and announcing plans Tor a series of Benefit concerts