| Show N 18D The Salt Lake Tribune Sunday October Mutual Funds Home Prices Plummet in Many US Metropolitan Areas Take- t - By Andrew M Gluck New York Daily News For mutual fund investors it was the ugliest quarter since the stock market crashed three years ago General equity funds the stock funds in which most investor money is socked away plunged an average of 155 percent in the third quarter ended Sept 30 the worst pounding since the 20 percent decline in the fourth quarter of 1987 according to Lipper Analytical Services survey of 1793 funds In an indication of how bad things were the leading fund of the quarter got to the top because of its bearish stance Dreyfus Capital Value fund managed by Comstock Partners gained 1296 percent because the fund had sold short many US stocks Comstock also positioned the fund to profit on a decline in the Japanese stock market and kept much of the rest of its holdings in the safety of US Treasury bills y funds stellar performers in the strong second quarter led the list of losing fund categories by plunging a stunning 224 percent in value Bucking a broad retreat just two of the 27 different kinds of fund groups showed positive returns — a total reversal from the second quarter when all but one fund category turned a profit The second quarter seems like a distant memory Remember those good old days? The average stock fund turned 6 percent profits the economy was growing moderately economic expanand the sion seemed like it might never end Back then most Americans probably couldn't name the leader of Iraq But in the third quarter financial markets were "Saddamized" Between June 30 and Sept 30 the broad Standard & Poor's 500 stock market index fell 145 percent and the funds mirrored the trend After the 30 Dow Jones industrial stocks hit a new e high the decline as fears of weaker began in mid-Jul- y corporate profits surfaced Then came the Persian Gulf crisis The Aug 2 invasion of Kuwait by Iraq forced a sudden shift in investor psychology The result was an obliteration of stock fund profits at the hands of Wall Street's most sinister villain: uncertainty Recession fears blossomed over new economic data and inflation seemed poised to block an easier credit policy from the Federal Reserve that could lower interest MetalsCommodities n q not quoted COPPER Selected world goldsdAcsicstiFtodca Eia r7so ng $388 30 up 5030 London afternoon fixing $388 25 up $025 London late $388 15 off 160 Pans otlemoon fixing $390 84 up $3 08 Frankfurt fixing $389 06 up $026 Zurich late afternoon $38800 off $160 itn $388 50 asked Handy & Harman $308 25 up S021 Engelhard $389 56 up $0 25 Engelhord labocated $409 04 up $O 20 Comex gold spot month close Thu $389 70 up SI 60 Bank 4 pm Thu NY Republic National $391 00 up $275 NY NY SILVIR NEW YORK (AP) — Handy & HOIM01 silver Friday was $4 320 up 0025 The bullion price for silver earlier in London was $4 2475 off $O 1375 Engelhard silver $4 32 unchanged fabricol ct $4622 NY Jan Mar May Jul unchanged month WAN spot Thursday 54235 COMO( 000174 SIONstRROUS METALS NEW YORK (AP) — Spot nonferrous mekil prices Friday Aluminum $1940 per metric Ion London Mel al Ouch Copper $14200 a pound U S destinations Copper 12665 cents per pound NY Co mak spot month Thu cents a pound Lead Zinc cents o pound delNered Tin $39912 (Metals Week composite once per lb ) Gold ON M Handy & HOIMOn 101)1V doily quote) Gold $38970 per fray oz NY Comex spot month Thu Silver $4320 Handy & Harmon (only daily quote) Silver $4235 pet troy oz NY Comex spot month Thu Bask $25000426000 per 76 Mercury New York $44000-$4450 troy oz Wt Platinum (contract) Platinum $41700 NY MOIC spot pet troy oz b - Rates or 1991 second-mortgag- and Oct Nov Dec Brazil Britain twd twd twd Canada 996049000 9955 9955 9865 9925 9065 9865 9715 9645 Est sales 7800 Thu 's soles 8583 Thu 's Open int 35513 up 1474 ALUMINUM 40000 lbs cents per lb 7800 78 00 78 00 78 00 7800 7800 Jan MOf May Jul thu's open int UM-100- 1 CleCAGO (AP)—Butter unchanged Grade A 98 Grade AA 98 Eggs: bade sentiment steady to llim to delivered volume sales buyers were on mediums Grade A extra large 8144 7741 mediums 1645 Friday: 50 Fodoy higher Large Fri Thu 55463 56934 12225 12270 1069 1078 3131 3454 8731 8682 5067 5070 5091 5093 5114 5147 5134 5186 11450 11486 11490 11528 11531 41566 11567 11606 32554 32554 52330 52300 57685 58360 85600 85600 7370 7418 27434 27434 36020 36120 50920 51270 15205 15170 15206 15168 15203 15166 15193 15156 15230 15165 77548 77545 18018 18083 186400 186400 5675 5655 20229 20229 half of the business leaders anticipate further weakening in the economy during the next six months Only 15 percent expect the economy to improve "Executives responding to the survey prior to the Iraqi invasion of Kuwait were as pessimistic as those responding after" noted Jason Bram associate economist for the Conference Board's consumer research center "This suggests that the Middle East crisis has had little effect on NEW YORK (UPI) — Business executives' confidence in the US economy sank in the third quarter to its lowest level since 1980 a private business research organization says The Conference Board said its measure of business confidence fell to 40 for the quarter as opposed to 46 in the first quarter and 48 in the second A reading below 50 indicates that pessimists outnumber optimists The decline in the confidence rating more than erased the modest improvement experienced in the first half of the year the board said The survey covering about 1000 chief executive officers and other top executives in 25 sectors of the economy also found that nearly 70 percent of the respondents thought economic conditions have worsened over the past six months Barely 6 percent said conditions have improved The survey also found that almost & - ': - - ' ' - - L ---- -- -- ---- -- '- - 007768 15485 Lebanon Masayuki uMexica Nethrinds 003072 001912 DONTIOrk 1734 001168 ECU 13568 3645 Finland 2776 ROM 1964 1950 6575 6592 Germany y Nod 6576 6593 twd 6578 6594 twd 6582 6598 006566 006594 Greece 1290 1290 Hong Kong 0555 0553 y4nd4o todnsia 000537 000537 Ireland 17620 47585 Israel 4043 4943 000878 000872 113900114560 Italy 007767 007713 42875 12965 Japan twd 007769 007715 42872 12961 12871 12961 60cly 562 007769 007715 Coimbra 78 00 78 00 78 00 78 00 Mat May Jul Sep Dec twd hyd twd y 78 00 7800 7800 Jan 8180 0936 0319 0115 19735 19642 19553 19478 8734 8703 8672 007714 12874 42964 15485 64580 64580 000952 40500 10500 2 6970 26980 3706 000348 000348 287500 287500 5834 5791 47440 17269 N Zealand 61E10 6175 16194 16181 1698 1689 58880 59220 Norway 0462 Pakistan 0462 2165 2165 0000023 0000023 435540 431592 yPeru 0392 0392 2549 2549 007494 007460 13350 43405 Portugal 2667 2667 Saudi Arab 31502 37502 5793 5774 17263 47320 Sinktostor So Korea 001398 001399 74530 71460 3960 25255 25275 3956 So Attica 010460 010379 9560 9635 Spain 1776 1770 56310 56500 Sweden 7819 7837 Switzerind 12790 42760 7822 7841 12784 42753 twd 7824 7842 42781 12752 hici 7823 7842 12783 12752 twd 90lay 0373 0367 Taiwan 2678 2678 04011 04011 2493 2493 Poland 000370 000371 270200 269317 Turkey 2723 2723 36727 36727 UAI 000740 000740 4352 00 435200 Meuguay 0204 0204 490300 4913300 09050 1105 4405 09050 Yugoslav ECU European Currency Unit a baskel Reserve currencies Me Federal European Boards index Me value Cl the &ear against 10 other currencies wetonted on the basis at trade was 8294 Thursday aft 046 points or 055 percent ham Wednesday's 8340 A year ago the index was 10146 prices as at 1000 am ECISkIfti Sine from totem Systems and ofher sourcet mocker 631e Se ccornmercsal rate rate rate nancial hate herd Jordan Thu 0476 8150 0928 0317 0115 19725 19634 19542 19471 8706 8675 8646 8616 003072 001912 1714 004168 13481 3645 2769 FO 0180 80 New Confidence in Economy Sinks to World Income funds 000952 3708 I- - ' ' - 'Ã - - all-tim- high-flyin- ' : '"- - - ' - - - - -- ' - - - 1 - - ' ' k '' z "I DIDN'T NEED A BAROMETER TO KNOW TRIAD PROVIDES THE PERFECT BUSINESS CLIMATE" mom- - i I' - I - - Sr ' - ASSOCIATES (1r7 - 71: ' N' fc- Kaye LeCheminant GRI CRS "WOMAN OF THE YEAR" Last t 4 4 L'Ir 1' ' — firl - r I 4 ' 4 L ' -- f 4 ' i4 Ce'l ' (z! ) z st te A 4 i 1 4 A - i $- l P ' ' :: ft - venience value and room to expand And everyone at Triad WaS extremely - i: 1 1 itr ' - I 4 i e 1)allighte has been holding up our service department forz0 years 1 1 i I ! ' 4 ( I ‘ Cadillac make the prilnikk 111711 S Main Salt Lake Ca) ( N- - 1kt !wt') k WeatherBank Inc is bright and sunny thanks in part to our new Triad location" General Manager WeatherBank Inc Ktuew- t5:cobiLD" : - I trt it' ') a "The financial forecast for MARK EUBANK -- (") 1 feJt I (7) ( ( tlettritIC d I ( Paul "little has been a mainstay of Carleson Cadillac's service team since 1951 Carleson pmfessionals like Paul offer a level of expertise unmatched by any other Cadillac dealer ci in Utah That's because we sell Caddies exclusively It's why we've won Cadillac's highest dealer honor each year it's been awarded (14 automobile see a considering If you're rid:': haury the fle dealer Ivho sells only Cadillac And sells more of them than any other dealer in Flak 1 company like ours can be disastrous but they helped us through that storm and into dear computer-oriente- sailing ' e farmers and the general consumer all We desperately over the globe needed more space! "Triad Center provides everything we ever wanted — prestige con- 7 I - (1 i provide services to television radio commercial and industrial facilities J L - "WeatlierBank Inc has grown rapidly during the past two years We I i - - a 410 '4--- "IP the probabilities" says Lawrence'l-Krause a financial planner who" knows about risk because he lives In'' an earthquake city San Francisco "I'd advise investors to have cautious optimism with the first word being 'cautious' " Krause says he has a portfolio that basically fits investors of all ages — with some fine tuning It's meant to protect assets from the dangerous economic fundamentals of the 1990s but also allow someone to profit if things start looking up For starters Krause advises hav— ing just 30 percent to 40 percent of investable assets in stock funds If you have a lot more than that "inch down to that level" — even though 'b you're selling at what appears to be a less opportune time 44 Krause who has become a celebrity financial planner because of his weekly segments on local TV news: advises clients to put half their stock fund investments in domestic stock funds and the rest in foreign funds y ' 1 ' ow By Andrew M Gluck New York Daily News Surveying the wreckage in last quarter's mutual fund results will undoubtedly make a lot of readers think about bailing out of stock funds Eighteen of the 19 stock fund categories posted losses with 16 of the 18 declining by double-digi- t figures Consider the poor soul who became excited about the stock market when the Dow indusin mid-Jule trials hit an high of 3000 and decided to put $10000 into one g of the growth stock funds His shares are now probably worth about $7800 Investors who have watched the painful erosion in their stock funds are surely asking themselves: Should I get out now or is this bear market be over soon? going to t The-facis nobody knows how long or how deep this bear market will be All you can do is adopt a sensible plan and stick with it "You have to plan for the possibilities and go with Low - ' rs Bear Market Calls for Sensibility' business leaders' spirits Either way it's clear that business leaders' confidence has dipped" Although respondents in all sectors reported weakness banking and financial executives were the most negative about current conditions and expectations for the next six months Executives in the utilities and insurance industries were the most positive in their outlook for the next six months the Conference Board said ' te Plan for Probabilities revised 10-Ye- ar CONGRATULATES co in 3 percent If you're living in a city where prices have dropped your response will depend a lot on your personal plans: — If you're happy in your house and intend to stay the bad news on housing doesn't matter You can afford to wait out the decline Over the Foreign Exchange month at the Utah Association of Realtors State ? Convention Kaye LeCherninant was honored by being awarded State Women's Council of Realtors "Woman of the Year" " Woman of the Year is the highest recognition award HOME given by the local and state chapters of the Women's OFFICE: Council of Realtors for service to the industry and community She will now be eligible to receive the C1R CruclIAHAPIittA National Woman of the Year Award at the National Convention in November held in New Orleans AND A S011 lArts if 1992 minimum bodes of Fork ouneney Dallas In in dollars tan eurwiney Australia Austria 65 45 20 ill NY CHAPMAN-RICHARD- S ' Staying Ahead Foreign Exchange - NEW YORK (AP) York prices nabot available Copper lututes 'lading on the Comex Friday OpenhIghtexeSettloChg MI GRADE COPPER 25000 lbs gents per lb Oct 12590 12600 12450 12475 -- 190 Nov 12030 12030 11960 11950 -- 225 Dec 11400 114 65 11250 113 50 -- 225 112 00 11230 11100 11180 Jon -1oo moo lio 10 -1i1 ao Feb 10850 10900 10730 108 10 -- 1 55 mai 10720 -1My 10700 107 00 lotoo 106 30 -1105 65 —90 Jun Jul 10520 10540 10480 104 80 —60 10380 —55 Aug 10320 10380 10320 10280 —40 Sep Dec 50020 100 90 100 00 100 30 —20 NEW YORK (AP) NY which invest in bonds across the globe managed a 41 percent total return and gold ifunds — that safe haven for troubled times — gained 4 percent So the two top fund categories returned only paltry profits as all other types of funds surveyed by Lipper posted negative returns ' Thu GOLD Even the bright spots in fund per- formance offered little cause for ex- ttiro Bryant Quinn the order of house may be fixed at some point in the future — say three years Three warnings if you go this route: (1) Rent only to someone like-- M ly to qualify for a mortgage in the 01 future (2) Don't let a slick investor f1 talk you into giving him an option to buy for no more than the price of the Li rent If the monthly rent is say $800 he should perhaps pay $1100 if the deal includes the right to buy ) lawyer to draw m (3) Get a real-estaup this contract so your interests– will be protected 97 — If you're a buyer today you're in Hog Heaven Prices are down and )b lease-bu- y options can be had by lp people with insufficient down pay- ments In 1989 for the first time in more than a decade the percentaget1 of young people owning their own homes turned up ) One suggestion to home-owneSeattle Portland Sacramento or 3( any other city where housing values ! are still riding high: If you plan to retire and move away within two years consider selling your house or'"11 -condominium now at top priceg In- - vest the proceeds in Treasury rent an apartment for a couple of years then buy a cheaper house-- I somewhere else High house prices are on the en- - srf) dangered list If you sell now you !"? know you've kept your equity intact 1990 Washington Post Writers fir Group ' long term (say five to 10 years) housing prices generally match the inflation rate — If you planned on borrowing against your house your credit line may be curtailed Before the drop in housing values bankers were lending up to 85 'percent of the house's value to people who earned enough to carry the loan Now many banks won't go higher than 70 percent This e loans to may limit parents with high tuition bills You'll have to turn to student-loa- n programs where your interest pay ments are not — If you're thinking of moving don't Stay put for another couple of years until the national slowdown (or recession) passes — If you must move don't buy a new house until you've unloaded the old one Thousands of Americans are staggering under the burden of two mortgages because they can't find a buyer for the house they left That's the road to foreclosure which will ruin your credit record for years What if you've taken a new job in another city? Rent a room there until your house is sold even if it means leaving your family behind and commuting home on weekends It's the lesser misery — Consider renting your old house with an option to buy The tenant pays the normal rent plus something for the option plus money toward the down payment The price of the Week's End Market Data rates tre:::") Modf:irH Normally such huge speculative gains are a prelude to disaster But the Northwest may escape the sharp price reversals suffered by homeowners in the East because — at the moment — the gathering recession seems likely to pass that region by Analyst Sara Johnson of the forein casting firm DR1McGraw-Hil- l Lexington Mass predicts growth will slow in the Pacific Northwest but will not stop Even so Seattle's boom in housing values is probably history — so this is no time to jump in and speculate WEFA predicts price gains there on Seattle where the median house may all-tim- i was City On the other end of the scale lies Small-compan- citement gain 21 percent this year on top of a 24 percent rise in 1989 Memo to Seattle: New Yorkers Bostonians and Washingtonians remember how that NEW YORK — If your house is worth less today than it used to be you have plenty of company Median prices will drop this year in 17 of the 50 largest metropolitan areas according to the WEFA group an econometric forecasting firm in Bala Cynwyd Pa Last year 10 areas showed declines Next year the blight might hit 11 In a few unlucky areas prices will slide from 1989 right through 1991 That's not quite as bad as the "Houston disease" which is five straight years of falling values But it's comlosers: most ing close The three-yea- r of New Jersey Hartford Conn Long Island NY and New York Quarter Drop I 14 1990 1 0 1 - 1 i t ' TRIAD CENTER ' For more information contact: Jack Woodward Scott Wilmarth 530-392- 530-392- 8 5 A TheTravelerr by Grubb A Elks PrOPek Managernere Setwces AAanaged 1 ' ! ifrA 4 L - tett t 1 - – -4-116":-:I - k 464604Ipty0F&m0AeskOd400etoie00dNota00!&ARVAPK |
