European Stars and Stripes (Newspaper) - July 1, 1990, Darmstadt, Hesse                                By Jonathan Fuerbringer the new York times while the Dollar has been relatively tame this year it has still managed to boost the returns of some americans who invested away from Wall Street. And if forecasters who think the Dollar will decline later this year Are right this could be a Good time to invest in Stock markets abroad a a in Britain West Germany and Japan a that look As though they have a Chance to. Rally in the second half of the year. A weaker Dollar would give the investor More for his Money when stronger pounds yen Mark or other foreign currencies Are turned Back into dollars. In the first half of 1.990, this Exchange Rale gain a because of a weakening Dollar a has accounted for most or All of the profits from several european Stock markets and has mitigated the losses in others. A 9.5 percent Rise in the Swiss franc against the Dollar accounted for most of the 10 percent gain in Dollar terms from the Swiss Stock Market through the first six months of the year according to the financial times world indic is. /. The Market is up Only 2.2 percent on its own for the year. This is the first time in two years that americans investing in Switzerland have received a foreign Exchange gain. In 1988, a 10 percent gain in the Market was turned into a 7 percent toss because the Dollar went up and the Swiss franc went Down. Last year a much smaller Rise in the Dollar chimed a 23.7 percent gain in the Stock Market Down to 21.4 percent. The investor in Britain also has been helped by the recent weakening of the Dollar against the Pound. A through mid june the London Market was Down 2 percent for the  with the Pound going up 7.5 percent against the Dollar this year investors came out 5 percent ahead a i they turned their pounds Back into dollars. In Spain a 4 percent fall in the Market was Cut to less than 1 percent when the stronger peseta was turned into dollars. In the Case of Japan the reverse occurred. A stronger Dollar made the Sharp losses in Tokyo even More painful because the weaker yen now buys fewer dollars. The Tokyo Market measured by the financial times Index fell 21 percent through mid june but the foreign Exchange Factor increased this loss to 26.5 percent in dollars. Forecasters Are. Divided on what direction the Dollar will take the rest of this year. But it looks As though the variables favor a weaker Dollar against most currencies. Those who feel the United states Economy is slow ing while West Germany a and Japan a continue to expect the Dollar to fall against the Mark yen and other currencies. With moderating growth 9 and with stronger growth in West Germany these economies Are More attractive than a slowing United states with inflation stubby my holding around 5 per of the Federal Reserve Board decides in the next few months to lower interest rates because the Economy is sowing too slowly the dollars decline could pm cow. Analysts already expect the West Gernan Bundesbank to raise interest fates later this year to curb any inflationary spurt from the economic Unton of the two Gen Hanys this would make the Mark More attractive to investors. This View of a weakening Dollar gives investors a fairly attractive Opportunity. ,. ,. Some analysts How exp the Tokyo Stock Mark as1 measured by the nikkei 225 Index to rally to Between 35,000 and 40,000 by the end of the year a remarkable rebound from the 30 percent decline in the first months of this year. A a ,. At 40,000 the nikkei would be at an All time High. The Market in Germany which Lias fallen about 10 percent since reaching a record High at the Ena of March does have the potential to recoup or even move higher if the jitters about monetary onion subside after the two German economies Are unified this week. To invest Money by Floyd Norris the new York times Mutual fund investors have slowed their headlong Rush into Stock funds managers say but arc still not taking Money out of the funds despite junes Choppy equity Market. The managers added that a junk Bond Quot funds after nearly a year of seeing Money pour out Are finally attracting new Cash. The comments came last week As the investment company Institute released figures showing that previously cautious fund managers poured Cash into stocks in May helping to push prices up. Before that spending spree the funds had allowed their Cash to Rise to record Levels. Fund managers in May bought $5.2 billion More in common stocks than the sold up from a net Purchase of $88 million in april. As a result just 11.3 percent of the assets of Stock Mutual funds was held in Short term Money Market instruments called Cash in Industry jargon. That was Down from a record 12.5 percent at the end of april. As the junk Bond Market fell into disarray in late 1989 and Early 1990, investors rushed to pull Cash out of funds that had invested in these High risk securities. In the 10 months that ended in april investors withdrew a net $6.3 billion from such  in May the Cash flow was a Posi live $57 million a Small fraction of what was previously withdrawn but the first positive figure since june 1989. The Cash flow figures include sales and redemption As Well As transfers Between different funds but exclude reinvested dividends. This month Many fund managers said the flow into junk accelerated. Quot the High yield fund was our strongest seller in the Bond Ajea in june a said Jane Nelson a spokeswoman for the to Rowe Price group of funds. May was a Strong month for stocks with the Dow Jones Industrial average rising 8.3 percent fund switchers those investors who try to time markets by moving Cash among different funds were convinced that the move was real and moved a net $2 billion into equity funds during the month. That was the largest such figure since the beginning of 1979 the earliest Pend for which comparable figures Are available. The previous High was $1.7 billion to August 1984. The Cash flow into equity funds figured from sales less redemption and not including the fund switchers was $2.3 billion in May Down from almost $3 billion in april. April a figures were swollen by retirement accounts which had to be financed by april 16 this year. Brian Mattes of the Vanguard group said that Overall Cash flow into equities was running at a about two thirds the May level which is not bad a but added that All that Money in june came from new purchases. The fund switchers have taken Money out he said. Another sign of increased caution on the part of Mutual fund investors came from the Fidelity investments Survey of investors attitudes taken by the University of Michigan a Survey research Center. While the Survey found Overall investor Confidence was slightly higher it found that Only 19 percent of Mutual fund owners said they intended to buy Stock funds in the near future compared Vith 37 percent in april when the question was previously asked. But there was a Small increase in the number of fund owners who said they planned to add to Bond fun Sand a Sharp Rise in the Nurnberg who said they planned to add to Money Market funds. Stars and stripes bookstores stars and stripes bookstores a h it 33 Cut California Gold is a stars and stripes top 10 paperback selection for the month of july. Each month we offer customers 10 different popular paperback titles at 10% off from the regular cover Price. 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