At Bentley It's Lost Last Day of School
Total Page：16
File Type：pdf, Size：1020Kb
ui;.:..'Ju w. ~i. ftu ‘ 20 - MANCHESTER HERALD. Tues.. June 22, 1982 ■ ■ ■ ■ - . •■■■ , BUSINESS / Classified A Cheney recalls^ A look at the Rose collects childhood home i n-war planners, 3,772nd hit pages g ... page 7 . page 11 For collectors, it's the year of the crunch -ir.. ^ -it' FWVbVjJ ’ir Financial assets (such as stocks, bonds and foreign Taking the performance of leading Investments If you’re having a rough time making a buck on your currencies) are a clear beneficiary of declining infla ........ ..............................................June 1. '81-’82 investments, you’ve got lots of company. tion, reduced government intervention in the private . ..................... .........................Rank Return The sad and almost unbelievable fact is that only one sector and an economy favoring savings and in PCT Fair tonight, Manchester, Conn. of 14 leading investments — bonds, up 11.4 p ercen t— vestments. And all three, are prevalent right now. 11.4 managed to outstrip the 6.6 percent rate of inflation Dan Dorfman Bonds 1 Wednesday, June 23,’1982 2 6.6 sunny Thursday over the last 12 months (ending June 1). C P I(x ) Salomon warns, however, that not all financial assets 6.3 That means — and it’s a pretty dismal commentary on S yn d icated Oil 3 Single copy 25tt figure to do well in the current environment. Addressing 3.4 — See page 2 the state of investing — that you were probably a loser Housing 4 C olum nist itself specifically to stocks and bonds, the brokerage 0.0 over the past year if your dollars were in such things as Diamonds ' , ® firm clearly favors the fixed-income instruments. In 6 -0.5 iianrliPHtpr stocks, old masters. Oriental rugs, housing, foreign Chinese Ceramics fact, it believes, that bonds may be the only bargain left 7 -O.fl currencies and stamps. Farmland among the m ajor investments. 8 -1.9 Ditto for investments in farmland, oil, gold, silver, Foreign Exchange 9 -3.0 diamonds, Chinese ceramics and U.S. coins. U.S: Stamps -10.5 ITS REASONING: With inflation around 7 percent Stocks 10 THESE DISMAL FINDINGS are disclosed in the 11 -16.2 over $60,000 two years ago. and highgrade corporate bonds yielding 15 percent or Oriental Rugs Another cease-fire broken sixth annual survey of returns of financial and tangible more, an 8 percent booming real return — that’s above Old Masters 12 -22.0 assets conducted by Salomon Brothers, a leading Wall Aside from bonds, only two categories — oil and the inflation rate — is now available; that’s un U.S. Coins 13 -27.8, housing — managed to rack up price gains for the year. 14 -34.0 Street block-trading firm. precedented for the postwar period. Even on U.S. Gold Obviously the declining rate of inflation is taking a They rose 6.3 and 3.4 percent, respectively. 15 -44.5 government securities, a real rate of return of nearly 7 Silver heavy toll on tangibles (or collectibles). So too are those If anything, the latest returns clearly point up the in percent is available. lofty interest rates, which are providing high rates of creasing risks in all sorts of investments. ___June 1, ’80-’81 returns (in the 13-15 percent range) on a wide variety of Israelis battling On the other hand, Salomon observes that the enor Rank Return In the very first Salomon study in ’77, performances money-market instruments. mous amount of corporate debt — combined with the ......................PCT Indicative of the impact; Ten investment categories, ranged from a 2.1 percent drop to a 20 percent gain. The real high cost of carrying this debt — is causing the ero 12 -9.6 led by precious metals, suffered price drops in the last gap this year: a much wider 11.4 percent advance to 44 Bonds sion of returns available to equity investors. According 6 10,0 12 months. Silver was the worst performer, tumbling 44 >/2 percent drop. C P K x ) ly, it believes the growth of earnings and dividends w ill 5 14.3 ‘A percent. Next came gold with a 34 percent loss. Hefty Oil be insufficient to allow stocks to be competitive with 8 8.1 declines were also sustained by coins (27.8 percent), old Housing prevaiiing or anticipated interest rates. 9 0.0 Syrians and PLO masters (22 percent) and Oriental rugs (16.2 percent). HEIGHTENING THE volatility, as Bob Salomon Diamonds Chinese Ceramics 1 36.5 Stocks fell 10 >/2 percent. sees it. is the skyrocketing debt that was amassed in a The firm believes that an eventual business recovery, Farmland 7 9.7 Diamonds, according to the Salomon study, held their rising inflationary environment. coupled with heavy government needs to finance the 14 -17.3 ground — showing no change for the year. However, the huge budget debt, could lead to higher rates later In the Foreign Exchange By United Press International Lebanon began June 6, code-named peoi’.tle were killed and 73 wounded 'Tf you borrow money in an inflationary environment U.S. Stamps 4 18.0 brokerage firm is quick to note that its diamond index year. Peace for Galilee. bef() re the attacks were halted by a on the theory you’ll earn, if you have less inflation, then 2 25.3 tracks rough uncut stones (not gems) and therefore does Stocks Israeli soldiers backed by ar Israel has stated its forces will not new Israeli cease-fire urged by U.S. obviously you'll earn something less than X ,” he says. 10 -0.2 not reflect the declines in the finished product. One parting thought from Salomon: If you’ve taken a Oriental Rugs tillery fire battled Palestinian invade West Beirut, but Defense en vo y Philip Habbb. "And in view of the high rates — and the accompanying Old Masters 3 22.9 guerrillas at refugee camps south of Minister Ariel Sharon was reported flyer on one of those collectibles (from antiques to art) Isr aeli planes also bombed Syrian .SOME JEW ELKV SOL’KCES tell me that diamonds high debt — there’s going to be more wild up and down U.S. Coins 11 -8.0 Beirut today. Syrian and Israeli pressing for a thrust into the in the hopes of turning a fast profit — you’ve got and Iranian positions Tuesday along are down roughly 10 to 20 percent in the past year. And moves in everything.’ Gold 13 -13.9 tanks and artillery dueled fiercely in besieged Moslem sector. Extra problems. Those high interest rates, as the brokerage the tleirut-Damascus highway in the the fellow who supervised the Salomon study. Bob Silver 15 -26.6 the mountains east of Beirut and in Israeli forces were reported moving A look at tomorrow’s prospects leads Salomon house sees it, could have a continuing corrosive effect mouritains east of the capital while Salomon Jr., the director of equity research, figures (X) PCI equals Consumer Price Index southern Lebanon near the Syrian on Beirut. Brothers to conclude that the outlook is much brighter causing both speculators and investors alike to flee the Israe: 11 troops and tanks advanced on that the diamond most focused on — the one-carat D- Source: Salomon Brothers border, field reports said. Witnesses reported shelling and for financial assets than tangible assets. rarities market and return them to the true aficianado. Pale;:itinian and Syrian positions in flawless stone — is now going for less than $20,000, vs. The fighting shattered an over small arms fire around the Beirut an at pparent bid to capture the night cease-fire as Lebanon’s Coun international airport and in the area highn'ay linking the Lebanese and cil of National Salvation met of the Palestinian refugee camps Syria n capitals. 8.6% Real GNP State firms seeking a political agreement on the that border the airport. 6,000 Palestinian guerrillas trapped Diplomatic sources said the In Tel Aviv, the military com Gross National Product - by surrounding Israeli forces in National Salvation Council in Beirut mand said today that 47 Israeli Seasonally adjusted annual Lebanon. had suggested to U.S. Middle East soldi: ;rs were wounded in the rate - Percentages reflect Israeli tanks, artillery and troops envoy Philip Habib that the Israelis fightii ig. In Beirut, the U.S. Em change from previous quarter w. want to help clashed with Syrian forces in the pull some of their forces out of the bassy told American citizens WESLEY COLLINS (LEFT) AND ROBERT ZIKUS mountains east of Beirut and east of Beirut area, while the Lebanese Tuesd ay its services were being . students feel bad about leaving Bentley School '•awkA- 1981 1982 Karoun Lake, at the southern end of army collects heavy weapons from “ term inated” and urged them to the Bekaa Valley and 15 miles from the Palestinian and stations troops leave Beirut. The U.S. fleet in the Tuntative fill cuts the Syrian border, field reports said. in Moslem west Beirut. Meditrjrranean, partly because of Projection} gap The Israelis killed two Syrian “ This could be a way out, but the NATO' exerices, was at its greatest soldiers advancing on Israeli question now is whether Israel will strengUh since the 1973 Middle East HARTFORD (U P I) — A state business leader says positions, the military command in accept such a plan now that it’s war. At Bentley it's lost 1.4% Connecticut companies want to help fill the gap left by Tel A viv said. army has Beirut surrounded and the Pale : Stine Liberation Organization federal spending cuts under President Reagan's New 0.6% The Lake Karoun clash was the Palestinians trapped,” a western leader Yasser Arafat, trapped in the 4th I 1st Federalism program, but warns the industry cannot be 2nd first between the Israelis and the diplomat said.