European Stars and Stripes (Newspaper) - April 8, 1992, Darmstadt, Hesse                                Page 18 the stars and stripes wednesday april 8,1992 Money matter financial trends can fast prove fickle by Chet Currier a business writer new York a if you set out these Days to keep up with the latest fashions in the financial markets you need to be fast on your feet. What passes today for a trend among investors May come and go in a matter of weeks turning previously prevailing patterns upside Down. Consider the performance statistics for the Stock Market so far in 1992, which show such big 1991 losers As the Auto stocks suddenly leading the race. As of late March Dow Jones Index of Auto stocks sported a gain of better than 32 percent since Jan. 1, to rank no. 1 among 96 Industry groups tracked by the financial publishing company. At the Back of the pack with first Quarter losses of about 22 percent were biotechnology and medical equipment stocks which had been the front runners of the Bond Market likewise has done a flip so far this year giving up a big chunk of its 1991 gains As Lon term interest rates have turned upward. All in All its precisely the kind of environment that has fostered the popularity among professional invest ment managers of Quot tactical asset allocation a an approach that Aims to change the balance of a portfolio As Market conditions shift. A performance wealth enhancement getting Richer a whatever you want to Call it a depends mostly on Wise asset allocation a said Barton Biggs of Morgan Stanley amp co. In an analysis published in Barrons Magazine. There is a lot of debate however Over How much Benefit Money managers As a group can realize by this attempt to stay one step ahead of Market swings. And there is a substantial school of thought that no matter How it might work for investing institutions individual investors Are Likely to be much better off ignoring changes in investment Vogue from week to week month to month or even year to year. A allocating Money among asset categories carries enormous potential but As with most High return activities huge risks a said Mark Stumpp director of research at Phi strategies a firm that specializes in asset allocation research. To illustrate Stumpp cited the relative performance of Long term Treasury Bonds compared with three month Treasury Bills from the beginning of 1960 through the end of 1991. A Dollar invested in to Bills grew to $7.20 Over that Span he calculated while the same Dollar committed to Bonds would have increased to $8.20. Thus he noted an investor who braved the creater Market risk of Bonds received some Reward for taking that Chance even though Bonds suffered through Many Rocky years in the inflationary 1970s and Early 1980s. But Stumpp also said All of the extra return would have been missed if an investor got discouraged and fled the Bond Market for a single month a april 1980, when depressed Bond prices suddenly erupted in a 15 percent rally. A unhappily a Stumpp observed a even if the investor immediately jumped Back into the Market there was no recovery from missing that single month. Eleven years later the portfolio would be Worth Only $7.12, or 8 cents less than Treasury  this Case demonstrates just How hard it can be to a out think the markets Stumpp said. A your illustrative Bond investor did precisely the wrong thing by Selling when the future looked the darkest a he added. Furthermore he said a investors should avoid plunging into and out of markets. A single months return can spell the difference Between glory and  Model launched a worker drives a gleaming 1993 escort off the line monday at the Ford motor  stamping and Assembly Plant in Wayne Mich. A Small ceremony marked the Start of the new Model year. Iacocca took Poy Cut of Chrysler lost profits Highland Park Mich. A Chrysler  chairman Lee Iacocca took a one third pay Cut in 1991, earning just under $3 million As the automaker lost $795 million according to the company a proxy released monday. Iacocca stake Home pay was about $1.5 million less than in 1990, when he cashed in previously granted Stock options Worth about $4 million. Iacocca who will retire As chairman dec. 31, did not Cash in any options in 1991. Iacocca s 1991 compensation was made up of $976,378 in salary plus $126,464 in Stock As a Long term incentive and $1,883,436 in Stock under a special agreement with the Chrysler Board for him to stay on As chairman while his successor was being selected. No Chrysler executive received a Bonus in 1991 based on the company a 1990 earnings of $68 million. Iacocca in 1990 earned $918,182 plus cashed in Stock options bringing his total take Home pay to $4,580,461. Iacocca ovens 537,273 shares of Chrys Ler Stock Worth More than $9.5 million at monday s 3 . Price of $17.75. His designated successor Robert Eaton is getting $750,000 in salary this year plus another $200,000 to ease his transition from general motors corp., where he was president of the profitable pm Europe operation for the last four years. Upon joining Chrysler last month Eaton purchased 25,000 shares of company Stock Worth $441,750. Eaton also is getting an option to Purchase 300,000 shares of Chrysler Stock at $16.94 per share. He will get up to 62,125 shares Over the next three years if he meets several performance clauses Over the period. Executive compensation is expected to be one of the biggest issues at company annual meetings this season. Securities and Exchange commission chairman Richard Breeden has proposed making compensation figures available to All shareholders. Eaton a 1991 compensation from pm will be covered when that company a proxy statement is released later this month High school not enough report says by Dena Bunis new sudsy if . Workers of the future Are going to have the skills needed to succeed in a global Economy communities and workplaces All across the country have to invest in new ways of teaching and training says a Federal commission report release tuesday. The Secretary a commission on achieving necessary skills spent two years studying How youngsters can be successful in the modern workplace and How front line workers can help make american Industry More competitive and productive. Saying that a High school diploma has become a a ticket to underemployment or unemployment a the report recommended such Steps As developing a Sumdy for youngsters starting at Middle school a permanent record listing accomplishments and abilities not just grades. In its final report delivered to labor Secretary Lynn Morley Martin the 31-member commission determines that the commission s Agenda can be put in place if local educators and businesses attack the Issue on three fronts reinventing education encouraging work based learning and High performance industries and changing the Way Peoples abilities Are assessed students need to be taught a workplace know How a the report said a combination of Basic skills and what the group Calls workplace competencies. High performance workplaces the report said a require competencies in the ability to manage resources work amicably and productively with others acquire and use information understand and master Complex systems and work comfortably with a variety of  among men Ages 25-54 with a High school diploma for example the percentage of Blacks with incomes below the poverty line for a family of four went from 20 percent in 1969 to 41.5 percent in 1989. Among White men the percentage went from 8.3 percent in 1969 to 22.2 percent in 1989. And in the workplace american business concentrates the majority of its training on College graduates and managers the report said and most Small businesses provide no training. The report did not Call for any new government regulation or legislation to Deal with these problems. Congressional democrats have introduced legislation opposed by the Bush administration that would require employers to spend 1 percent of their payroll on training. The commission report suggests that the skills needed can be instituted at state school District and business Levels. But Anthony Carnevale chief economist at the american society of training and development said that the commission does not go far enough. Generic skills Are not the answer he said. A Many of the skills they Are talking about can Only be Learned on the Job a Carnevale said. Business Delta counterclaim says it did t kill pan am from wire reports new York a Delta air lines branded As the villain that killed off pan american world airways is trying to hang the blame on pan am a creditors. Atlanta based Delta said monday that it is seeking unspecified actual and punitive damages from the pan am creditors committee in a counterclaim to a $2.5 billion lawsuit brought by the creditors and pan am  opens against Rynex Washington a Federal prosecutors opened their criminal contempt Case against Rynex corp., charging the new York area Telephone company with a a wilfully disobeying the terms of the at amp to breakup agreement. As american Telephone amp Telegraph co. Was broken up the so called a baby Bells were barred from manufacturing Telephone equipment operating Long distance companies or engaging in information services