European Stars and Stripes (Newspaper) - March 14, 1991, Darmstadt, Hesse                                Thursday March 14, 1991 the stars and stripes b Page 17-Money matters today s tip this Tux Sean you May be one of the ? percent of All american fax avers who Inlet a paid preparer a handle their return. Be careful. The experts say that you re Likely to spend More time selecting a dentist than a tax professional. A tax preparation and counsel deserve added scrutiny a said Dede Pali with the Denver based non profit College for financial planning. Qualification s and training vary widely As does the record of ice vary for private tax preparation firms. Make certain you know whom you re dealing with. Conversion rates London up wednesdays closing rates for the . Dollar to other currencies. Figures arc expressed in dollars to the British Pound other local currencies in dollars a a Gold was quoted at $366 75 an ounce Silver at $415. A a March 12 a March 13 British Pound. .18510 1.8570 German Mark 1 5680 1 5760 French franc 5 3370 53705 dutch Guilder. 1 7675 1 7708 belgian franc. 32 285 32 35 italian lira. 1,17150 1.176 250 Swiss franc. 1 3595 1 3685 . 168 80 169.33 turkish Lua. 3,441 50 -3.451 40 said arabian Riyal 3 7504 3.7503 Spanish peseta. 97 61 97.70 portuguese escudo. .136 25 13630 Canadian Dollar. 1 1563 a 1.1535 austrian Schilling 11 06 11 0525 norwegian Krone. 614 6.1440  .a., 6 0260 60350 these Are unofficial rates As re ported by wire service and banking sources and they Are listed to give some idea of. Daily currency 11 actuation. A a a a a a the Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.53 thursday based on wednesdays noontime Price fixing. V. New York Exchange new York up a the 15 most Active stocks in new York Stock Exchange composite trading on tuesday Slock blockbuster ent. Rwjr Nabisco i  b Uniss corp Philip Morns. A ism corp. Pepsico inc. Pan Aiti corp Tremont corp Geni . Corp Enron corp. A Boeing co. At amp to company sales 9.463.800 6.299,500. 2.810,100 2.353.000 2.277,700 2.157.800 1.771.600 1.669,100 1.528.400 1,457,300 1.330.000 1.233,500 1.176.600 1.152.400 1.137.800 last 12 % 9 w 15% 5% 66 % 127 31 /4 1 /4 2 67 % 17 .14.% 56 v4 �47%. 33 % net chg. Off 1 is a off % Oft % off % off 1 on 2vs. A off %. Up i. Unch on w  on is a a up % a on % off % american Exchange y0rk up a the. 10.most Active stocks in we can Stock Exchange  tuesday. A. Stock Conti air Hodgs Bat industries Energy service Amdahl corp a Forest labs inc Hill Haven corp Warig labs inc b now chemical h Western digital a Echo Bay Mes sales 444.500 431.400 363.700 339.100 331.500 329.100 311.400 304.500 268.800 238,200 last 4 -. 13 2% 15 % 32. 2 % 3% 4 % 4 is 8 % net chg. Ott v4 up 1,-16 unch unch off 1 is. Unch up a up is off %. Up % Dow Jones Vork up Dow Jones closing Tange of averages Ai outs High 2962.13 1126 76 21435 1046 89 Low 290668 1105 08 211 64 1028 14 close 2922.52 111248 21265 1034 00 change Ott 16 84 off 6 88 up 1 01 Oil 4 38 Dollar Cost averaging a Way to make sound investments Kara no i Ltd air a a a 1 a a a a a a a a a a a i a a a a a. By Randy Mcclain financial writer if you Haven t heard the phrase a idol a Jarr Cost averaging a a Odds Are you re not a frequent investor in t in Stock Market or Mutual funds. If you do invest you May he wondering if this method  the Market is All its cracked up to he investment Counselor in Europe answer  resounding . A a. A a. A Quot a a a a a a Quot. The name May sound complicated hut in , Dollar Cost averaging is simple As Well its effective. I Leres How it works an investor puts the same amount of Money every month into the same investment vehicles usually one or More Well chosen Mutual funds and stays with the strategy for a Long time. The size of ones investment depends solely on the size of ones Bank account but Many advisers suggest at least $100 a month. What matters most is sticking with the investment plan. That Means ignoring All Stock Market fluctuations whether the Market goes up or Down. In fact financial advisers say the Best buys can be made when the Market Falls Here a Why a Dollar Cost averaging operates on the principle that when the Dow Jones average Falls an investor is generally Able to buy More shares of a Stock or Mutual fund for the same amount of Money. Lets assume an investor puts $100 a month into a  Selling today for $10 a share. At first $100 is enough to buy 10 shares. Over the next several weeks though the Stock Market takes a dip and the fund Falls to $5 a share. Instead of panicking the Dollar Cost averaging investor puts up another.$100. This time around his $100 buys 20 shapes. The investor benefits because he owns More shares at a lower average Cost per share. When the Stock Market eventually recovers investment advisers say the investors holdings should go up right along with it. A if you use. Dollar Cost averaging it is least effective in a Down Market that never conies Hack up again Quot said Charles Fronstin. A financial planner who works with military clients in Frankfurt Germany. But Fronstin added that hits never happened in the 200-year history of the new York Stock Exchange. Even during the Stock Market collapse of october 10,s7. When the Market fell More than 5.0k Points in a single Day the Only investors who lost Money were those who sold out during the crash. Investors who Rode out the huge loss eventually m demo n by a s t. H e s t of k in a r be t i i be d Back to record highs Over the next several months. _ investment advisers it in Europe said Dollar Cost averaging makes sense. Tor both Large and Small investors a a it a a proven technique. You re not go Tui to find any negative press at All about it a said John Gerrish another american financial planner in Germany. A Dollar Cost averaging does  results in a declining Market hut Oyer time All Good Mutual funds tend to go. Up.�?�. Gerrish added that the system works Best with Mutual funds As opposed to single company stocks because Mutual funds own shares in Many companies and Are less susceptible to one of them tailing on hard times. Other planners said Dollar Cost average my works Best when an investor continues with it for several years or even a lifetime. A the Shorter the period you invest in Mutual funds the More risk you re Tak Dollar Cost averaging pays off the last time the United states fell into a lengthy recession people who used the Dollar Cost averaging method of investing came out ahead. The accompanying graph illustrates How. It shows How two investors each with $9,000, put their Money to work Between june 1981 and november 1982. One investor Black line made a Lump sum investment of $9,000 in a Mutual fund that matched exactly the performance of the Standard amp poor s 500 Stock Index Over the next year and a a. Half. This investor lost 10 percent of his Money within three months As the Stock Market fell. By the end of the recession though the Stock Market recovered and investor no. 1 ended up with a profit of $1,223. On the other hand investor no it 2 Gray line put his $9,000 into a Money Market account earning 7 percent interest per year. Over the next year and a half he transferred $500 per month from that account into the same Mutual fund As the first investor. The Dollar Cost average. Minimized his Early losses and finished with a profit of $1,761 in the Stock fund he also earned $476 in the Money Market account for a total gain of $2,237, $12,000 11,000 10,000 9,000 8,000 i Dollar Cost averaging Mthm Lump sum investment 6/30781 1/31782 11/30782 source t. Rowe Artoe associates ing a Gerrish said. A but its pretty hard not to make Money Over a four or five year period. Most hear markets those in which stocks decline done to Hist longer than two years acid i normally its less. A Dollar Cost averaging harnesses the volatility of the Market. In october 19,57, when the Stock Market dropped 35 percent people who understood the Opportunity were automatically Able to buy �35-percent, More shares for the same amount of Money. When the Stock stir act Repov ered till those extra shares really. Paid off.�?�. Quot. A a / Martin , a financial planner. In Vilseck Germany said investing under a monthly plan takes the Guesswork out of the Stock  any fool who says they know what the Market is going to do is fooling himself and everybody else a he said. A if you put Money away month to month you done to need to worry where the Market is it any Given Point. You can go to sleep knowing that when the Market goes Hack up you la make Money.�?�. Vanleuven said Dollar Cost averaging works Best when used Tor. 10 years or More. He also suggested that savvy  should stand ready to dump in extra Money on occasions when the Stock Market Falls extremely Low and when Mutual fund bargains present themselves. However he frowns on using the monthly method to buy individual company stocks. If an investor owns Stock in ass Sharon Kilday just one company and the Stock keeps going lower and lower it might be better to bail out Vaisie Cuvin said. A i Konstin cautioned that Dollar Cusi averaging is not a magic formula a Dollar Cost averaging As Only one part of investing a lie said. A it Sonly there to prove the Basic concept of making consistent periodic investments and Over time buying a greater volume of  seasoned investors might like to try a Lew other techniques lie said including making Lump sum investments in. Individual stocks when they like a particular company. A. A a Quot hut Dollar cosi averaging should always be part of your investment philosophy a he said., business failures up . Business failures climbed 20 percent in 1990 to More than 90,000 tailed firms the sharpest annual increase since .1953. Nearly every Region suffered Large in creases Hyt the worst of the recession Lias been fell in the Northeast according to Dun ill Bradstreet a business research firm. Failures increased in Ever major Industry but hardest hit were companies in finance insurance and real estate. A the depressed real estate Market combined with the Impact of the savings and lib Ian crisis contributed to the big increase a Dun is Bradstreet said