European Stars And Stripes (Newspaper) - November 8, 1987, Darmstadt, Hesse Page to the stars and stripes sunday november a 1987 investor s guide by Bill Doyle o. It b my belief lbt Toon old serine is. Sittings Bonds Pur interest for 40 vein. Ai i result be e bands i pared cd to Dicera Ber 1947 will mine in december 1987. Should \ Ash them in imme do of by to tort if Ait 1 know i Lun the option at sex stung uni my e Bond lot he Bonds thereby Post poning Feder Al income in on the in cried e Bond interest until i it dem Ibe he Bonds received in the Rae Buge i Mirent Ben doing ibid in in dim i Doyle Doo t need be Nosey now Tad i suppose the Exchange for has is if my to of a your belief is absolutely Cor rect. The oldest e Bonds those issued before May 1952 reach final Mulu Rity and hop accumulating interest exactly 40 Yean after their Issue dates. E Bonds issued from May 1952 through june 1980 Are scheduled to Maiure in anywhere from 39 years eight month to 2i years depending on their Issue dates. The Federal government could simplify matters and Clear up a lot or confusion by granting further extended maturities 10 e Bonds issued Afler april 1952 so that they All reach final maturity after 40 yews. Bui. As is Soo Flen the Case complexity seems to be preferred Over simplicity at Endville on the Polo Mac. Immediately after each of your e Bonds matures you most certainly should either redeem it or Exchange it for an he Bond la makes no sense to hang on to e Bonds on which interest no longer is building up. If you Don t redeem a matured e Bond or Exchange it for an he Bond you re required report the accrued � Bond interest on your Federal income tax return. That fact comes As a Hock to those folks who have very old e Bonds lucked away. When you redeem e Bonds you Are required to pay Federal income tax on the accrued interest unless you have reported the interest annually As some people do. By exchanging your is for has you put Olf thai tax bite. Since you re not strapped Tor Cash now thai Exchange route would be the smart Way to go. He Bonds now being issued pay 6 percent annual Isle reel. That interest is Iii Etc to Federal in come tax. Q. My wife and 1 own series e and a Bonds. We will retire soon and intend the act aural them for he Bonds. I inert i Dollar limitation on Ibe Anu unt of a ind yes exchanged a. No. You must Tun in sees and or . Savings notes with a redemption value of at least $500 in order 10 receive ankh in Exchange above thai number you can Exchange any number millions of dollars Worth of sees and Sav Ings notes if you own them. Again i must strike a cautionary Nole. Unless your is Are 40 years old. Do not Exchange them Lor has until november or the month Fol lowing november in which your Bonds Are credited with the next semiannual interest accrual. By wailing your Bonds will receive the variable Market based in Tern rate which Wilt have been in effect far five years. Business news Wall Streeter Welcome respite new York a As the financial spotlight swung away from the . Stock Market in recent Days to currency markets around the world Many Wall Street ers were Happy to Sec it go the relative Calm that prevailed in Stock trading for most of the past week provided � respite from the Waves of Selling that swept through the Market last month. At the same Lime however Many Market participants were leery of relax ing too much or letting Down their guards. The october crash raised a bewildering array of questions thai Haven t . A Sailor in a Norm knows the alarm ing sensation of losing one i bearings observed Robert 3. Salomon or. In a commentary for Salomon Brothers inc. Sioco Boiden we in the sat St predict Merit Slock prices investor sentiment and the views of Many Market prognosticators have undergone Radical changes in a Short one View of the recent stability of Stock prices holds thai the Market has finished playing its role for the moment Stock pulse in a world financial drama that continues to unfold. Having sounded a warning the mar Ket is now presumed to be wailing for the full response of world financial Leaden to Trade and debt imbalances and the threat of recession. Another interpretation says thai investors scared themselves so thoroughly in the Selling frenzy that they simply did i know what to do next. Tentative Hopes seem to have in creased lately among Market analysis and economists that a severe recession can be avoided. We do not inevitably have at least not yet a classic cyclical Bear Market and a recession maintains Jeffrey Applegate chief investment strategist at . Button & co. Investors now he said Are awaiting action on lower in Trest rates and fiscal re adjustment from policymakers in Washington Tokyo and Bonn so that the global economic expansion can proceed and global Bull markets can recommence we anticipate that those actions will be a hum pm uhf Knul , hot. 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Fort Comine but if they were easy in Corn in Tihey already would Nave the Market t still edgy state was Evi Dent in the performance Over the past week of tie Dow Jones Avenue of 30 ind Moriau. Which dropped 34.48 Point wl9ssum. The new York Stock Exchange composite Index Tost .76 to 140.04 the american Stock Exchange Market value ii Tex fell s.i3 to 255.23, while the Nas Day composite Index Tor the Over Lafe counter Market Rose 3.10 to 326.40. Volume on the Btu Board averaged 212.13 million shares a Day Down from 281.99 million the week before. One source of optimism on the eco nomic Outlook it abundant evidence that output employment and other key forces were in Strong thape when the financial crisis hit we be Learned not to underestimate the resiliency of our Economy said Edward Yardeni economist at prudent is Bache securities. Obviously if Stock prices continue to crash then we d be come More concerned about an Immi nent recession. But we Don t believe the Economy s fundamentals justify another crash analyst also note that the typical Modem recession has begun with the Federal Reserve tightening credit and in Terest rate rising under die pressure of mounting business activity. Today the circumstances Are much different thanks in targe part to the Stock Market crash itself interest Rales have fallen sharply of late and the fed has been openly pursuing a policy of pumping Money into the system. Some sceptics argue thai the drop in interest rates is merely a response to recessionary forces thai May already have been Sel in motion including a drop in consumer Confidence in the Wake of the Stock Market collapse. For the moment few traders appear willing to place big bets on any of these interpretations. As Apple Gale said there s nothing like the biggest one Day crash in Stock prices in this Century to instill humility. Of Ted prices from Page 19
