European Stars And Stripes (Newspaper) - September 13, 1987, Darmstadt, Hesse Bears in a bullish Market by John m. Leighty United press International Kennethl Fisher manager of a $100 million financial Poi Holio Hal output loomed the Slock Market last year warns a the current Bull Maricl on Wall Street is about to Luin into Bull Fisher a tamils he s a boar in a Bull s Market but to has a historical perspective to support Are views some 90 Mancial Charls racing Iho influences on the Slock Market throughout ils fits Lory Horn he Gross National product Lotha length of women s dresses whal is his advice to the Little Guy he s Eray o get involved in any lorm said Fisher. Fisher said that although Long term holding of stocks has historical other investments including real Estalo. A of of people lose Money in the Stock Market because of poor timing and judgment. Whal most people do is gel attracted by the Bull Market frenzy and they buy a i High prices instead of at average prices Fisher said then when the Market alls they gel freaked out and sell so they lend to catch the Down part of the ride and that s Why they lose Fisher said nothing has really changed on Wall Slaet Over the years which is Why the charts by showing historic trends can help plot How the Market will behave in the Mure. Much of what happens in the financial world today has been played Over in history Many times before and has been captured in the cycles and trends of financial charts created Over Lime he said. Some of the charts show How stocks relate to sales earnings Cash Hows and assets. Others show the cd oct of wars on of s. Wholesale prices and one compares the average yearling thoroughbred Price to the Dow Jones industrials yearly close. One Hemline indicator shows that Short and racy skirts have traditionally been with Bull markets with Long dresses indicating a Bear Cycle. A Chart on investing in race horses is the Market gives the Sage advice Don t buy Nuttin that Fisher who operates his financial services 1mm a computer Complex at his Home in the san mated mountains of Northern California is the author of the Best soiling super stocks and has just published another Book which charts 90 historical financial cycles and trends in the Wall spree Waltz contemporary $30. The Book contains charts on How the Stock Market has historically reacted to such economic indicators As new car sales the Price of Gold real estate unemployment Oil Supply news headlines sunspots and women s hemlines. The present Bull Market which just passed ils tilth anniversary is full of overvalued stocks Fisher contends while predicting the Market will fall As much is 40 percent within a year. In super stocks Fisher explained ills method of investing in companies with Low Price sales ratios instead of the More popular method of evaluating Price earnings ratios. Fisher. Ira ooh his firm Fisher investments inc., manages a portfolio valued at $115 million for 102 clients. We like of buy unpopular stocks in Good companies said Fisher adding that his clients earned 36 percent return on their investments last year. We make our Stock in Trade on things that most people would never think of buying he said. Despite the Etc Allenl record Fisher now keeps one third of his client Money out of the Market and in interest bearing accounts. And he keeps a close Eye on the 20 to so stocks he keeps in the portfolios checking their Lelutin Gamst interest rates and other influences. Although Fisher sees the present Stock Market As risky Lor the Amateur me slow. He does give suggestions on How the Small Guy can make a million Bucks by saving. If a person a t age 30 had already put $ 10.000 into a tax deterred Ira and got a is percent return. Which he admits is High interest the Money would grow 10 it 3 million by age 65 q. It stalling Al age 30. A person putting �1,000 a we Parve can Fly. W How year into the same kind of account would also be a millionaire at age 65. The same million could be earned by starting at age 25 and pulling s2.000 a year in the account at 8 percent interest. It s All on one of Fisher s charts. The thing thai separates a financial person from the Normal person on the Street is that a financial person thinks in terms o compound interest and the person on the Street does said Fisher who does t go anywhere without his financial calculator in his briefcase for thai very purpose. Of course there s always those stories of people pulling $500 in a Slock thai skyrockets making them a millionaire but Whoso Are tha tales thai attract the gamblers Over the Wise investors said Fisher. A lot of people will make decisions about How to deploy their investments with far less time and research than hey would put Inlo a decision to buy a stereo or a relatively inexpensive consumer item Fisher said. When they lose their Money they wonder Why. In a sense you could think of the Stock Market As god s mechanism Lor teaching humility Gold May be a Winner Pago 18 the stars and stripes by Chet Currier associated Pressw worried that inflation is coming Back fearful of a Stock Market collapse turned Oil by wide swings in Bond prices and Low yields on certificates of Deposit and Money funds ii that s Iho Way you re feeling these Days As you try to manage your finances you have plenty of company flight now Many experts agree the investment menu does t offer Many appealing choices. Asil to fill the void several financial advisers lately have been talking up Gold investments in their Many forms. Over the past 2vj years the Price of Gold has rallied from about 3280 per Iroy ounce to $450. Bui Hal is Sld barely half the Peak Price of $875 in reached at the Star of this decade. Mutual funds specializing in Gold mining stocks and other precious metals investments have been standout performers lately. Experienced investors recall that Gold was a big Winner in the 1970s, a period of accelerating inflation and other economic uncertainties. Thai helped enhance its reputation As a store of value when the purchasing Power of paper Money was under siege. Many people still think Hal Way. As witness the upward Spike to the Gold Price last Spring when a new Ella lion scare swept through the markets. Gold began 19b7 at around $400 an ounce. For the first eight Meihs of the year it was up Aboul 12.5 percent by contrast. The Dow Jones average of 30 Industrial stocks ran up a 40 percent Advance Over the same Pend historical patterns suggest that the precious Metal markets Are building toward an eventual new Price explosion maintains Craig Sloane a financial futures analyst at Smith Barney Harris Upham & co. Sunday september 13,1987 Donoghue s Money fatter an advisory service on matters of personal finance recently recommended that its subscribers move 5 percent of their portfolios into Gold Mutual funds we Don t think inflation is headed to double digit Levels again bul we do believe the deflationary period to have been enjoying is Over the letter declared. A Small investment in Gold is a Good insurance policy should the inflationary scene heal whatever its Virtues however Many analysts agree the Heady experience with Gold in the 1970s is unlikely to be duplicated. At Hal time Many people were making their first acquaintance with Gold investments. Indeed for several decades until the Early 1970s, it was if Fegal for americans to own Gold directly though they could invest in mining stocks. Today the pre clout Metal markets Are Well known throughout the investment world. The . Government along with several of its counterparts in other countries has gone into the business of Selling Gold coins to its citizens. Bul though in May have matured the Gold Market remains volatile. Thai s the reason the Donoghue letter gives for the s percent limit on its recommendation. We Aren t out to harness the volatile Price swings of the funds bul to create a stable element of in Lalion Protection the firm said. Paul Merriman. A Seattle based adviser on Mutual fund investing says Gold is hoi but thai does t mean it should be in everyone s portfolio. Traditionally As tears of inflation and unrest have increased some investors have turned to Gold As a Safe Haven. These Days that Irusle May be misplaced in terms of volatility Gold makes equity and Bond funds seem positively stable. However or investors with a tolerance for Risic Good has a definite Appeal now because Tor the moment Al least the conditions seem right Lor it to continue to Rise in
