Logansport Pharos-Tribune from Logansport, Indiana • Page 18

Page 18 Pharos-Tribune, Logansport, Indiana, Wednesday, January 2, 1985 Business The We Wo Bond Buyer index Index of 20 municipal bonds; 20 matuiities. various ratings 1 11 ek's 10.0 9.5 1 1 1 1 90 2330 7 1421284 111825 Nov Dec. Jan. Chic.iyO Inbuilt- L'tMMs Dow Jones average Money supply 3-month Treasury bills 30 Industrials In billions of dollars Revised Percent, weekly average interest rate 1280 r-i f-J" Ili A 1240 550 III 90 -Oj-u 1200 545 85 1160 540 8.0 1 ii i i i i i i i i i i i i i i ii 1120 23307142128411 535 18251815222961320273 7.5 916233071421284111825 Nov. Dec.

Jan. Oct. Nov. Dec. Jan.

NOV Dec Jan Stocks Mixed In 1984 Investors hope economic revival will help in '85 Interior of South Side IGA on Burlington Ave. Grand Opening Set At South Side IGA The new South Side IGA Store, 210 Burlington will celebrate its grand opening beginning today through Saturday. The new store is owned by Waddell's IGA of Burlington. Store Manager Mike Scott said the firm will also host an open house Sunday from noon until 5 p.m. to allow visitors to view the extensive interior and exterior remodeling of the building.

Free popcorn and soft drinks will be available during the open house. Also beginning Sunday, visitors may register for $20 worth of free groceries to be given away daily January 6 through 25. The business is open seven days a week, from 7 a.m. to 10 p.m. Monday through Saturday and from 9 a.m.

to 8 p.m. on Sunday. Recent changes include a new roof and new ceiling and an entirely new meat department and meat preparation facilities. The interior has been painted and all display cases have been redone, according to Scott. The firm has 12 employees.

Free carry-out service is available and the store accepts food stamps. Investors' Guide By William Doyle Gold And Silver Not Investments Q. For years my brother-in- law has been urging my wife and me to Invest In gold and silver coins to protect ourselves against a financial crash he feels is so Imminent. I've thought such fears were unnecessarily apocalyptic in the past. But there are moments now when I waiver as I ponder the enormous problems the world economy faces.

What is the consensus today with regard to the hedge one should prudently take to anticipate pending financial disasters? A. There's no consensus. Different people informed or otherwise have too many divergent ideas about what to buy to protect themselves against what realistically has to be called the extremely remote possibility of worldwide economic collapse. As the old expression goes, "That's what makes a horse race." It's also what makes the stock and other financial markets tick. Face it.

Anyone who knew exactly the best things to buy at precisely the right times would become the richest person on earth. The gloom and doom merchants, including your brother-in-law, have been wrong to date. There's no doubt in my mind they will continue to be wrong in the future. Sure, there are certain problems with both the U.S. and world economies.

But there have always been some economic problems always will be. NEW YORK (UPI) The stock market turned in a mixed performance in 1984, with the most popular stock market average ending lower but some other indicators showing gains. The easy profits of 1982 and early 1983 gave way to a year of trendless trading with advances unable to generate momentum. Investors are hoping 1985 will be better as the economy picks up steam. Many experts expect some sharp stock movements in January but are uncertain about later because of tax reform proposals and the federal budget deficit.

The Dow Jones industrial average of 30 blue-chip issues, which rose 212.10 in 1983, fell 47.07 to 1,211.57, a drop of 3.7 percent. It was the first loss since 1981. But the broader-based New York Stock Exchange index gained 1.20 to 96.38, a 1.2 percent hike, and Standard Poor's 500-stock index rose 2.31 to 167.24, up 0.1 percent. THE DOW JONES transportation average lost 40.46 to 558.13, down 6.75 percent. It reached an all-time high of 612.53 on Jan.

3, went into a steep decline and lately began rebounding. The Dow utilities average rose 17.68 to 149.52, up 13.4 percent. It peaked at 149.93 Dec. 18, its highest level since Jan. 25, 1966.

As interest rates fell in the latter half of 1984, investors snapped up the high-yielding utility stocks, although some with nuclear power plant problems lost ground. Declining issues outnumbered advances 1,180 to 1,004 among the 2,361 issues traded. There were 177 issues that ended the year with no change in price. Secondary issues clearly were down for the year, continuing a trend that began in mid-1983. The American Stock Exchange index fell 18.75 to 204.26 and the National Association of Securities Dealers over-the- counter index fell 31.25 to 247.35.

NEW YORK STOCK Exchange volume totaled a record 23,071,031,447 shares, up from the 21,589,576,997 traded last year. The average daily volume was an unprecedented 91.18 million shares. The stock market began the year in fine shape, with the Dow industrials rising to 1,286.64 in early January. That put the index less than 1 point away from its Nov. 29, 1983 all-time high of 1,287.20.

But the market went into a seven-week slide as some analysts warned the economy was expanding too fast. The Federal Reserve tightened credit and the prime rate hit 13 percent. After some up and down movements for the next few months, the Dow saw 1,086.57 on July 24, its lowest point of 1984. That left the stock market poised for an explosive rebound. A RISE OF 25 points over July 31 and Aug.

1 was followed by a burst of more than 31 points Aug. 2. Then, on Aug. 3, the market went wild with a huge gain of 36 points on unheard of volume of 236,565,110 But the rally quickly ran out of gas. Although the stock market did not go much lower, the Dow wandered back and forth between 1,160 and 1,240 for the balance of the year.

During the latter part of the year the market managed to rally on days when interest rates went down, and notably, on the day President Reagan was reelected. The trendless trading in the second half came amid an atmosphere of confusion on Wall Street. The economy, which slowed considerably in the third quarter, showed signs of improving. The Federal Reserve cut the discount rate twice in a month to revive it. THE HUGE federal budget deficit was a worry for many, who saw it as creating a permanent upward pressure on interest rates.

The earnings of some multinational companies were hurt by the strength of the U.S. dollar on currency markets. In November, the Reagan COMPUTER Gold and silver are not investments. They are speculations straight gambles that the prices of those metals will rise. For most of the past five years, those gambles have not paid off.

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Big rally, heavy trading wins landslide. January 6 YEARLY HIGH 1286.4 One point under rucord of November. 1983 Prime late at 11 nrrci'nt August 3 RECORD VOLUME 236.57 million shares Market soars on lower interest rate- hopes, gains 86.80 3-dav record. Investor uncertainly over budqet delicits and foreign debts contribute to volatility December drop include tax-loss selling, and worry about proposed tax-law revisions Dow falls to fivc-month low on Reaqan budget news. High bond yields offer bettor return.

July 24 YEARLY LOW 1086.57 represents 17- month low. UPI administration began hinting at changes it would propose in the tax code. Investors were unsettled by the possibility of far- reaching changes in the way individuals and businesses pay taxes. In early December, an accident at a Union Carbide plant in India killed 2,000 people and sent that company's stock sharply lower. Because Carbide is one of the 30 Dow industrials, there was new downward pressure on Wall Street's most popular average.

The oil stocks held mostly firm despite weakness in the world oil price. SOME OF THE strength in oils was due to takeover activity. Some big companies like Gulf were swallowed up by competitors, and others advanced just on rumors that they were on someone's takeover list. CHECK YOUR PHONE BOOK FOR THE PARTICIPATING CiliLine is a service of Cilicorp A DIVISION OF TANDY CORPORATION STORE, COMPUTER CENTER OR DEALER NEAREST YOU fc A pp LV AT RADIO SHACK COMPUTER CENTERS AN(J PARTICIPATING S10R1S AND DEALERS NEW SOCIAL SECURITY FIGURES Patricia Hoehne Middleton CPA In 1985 income tax rates will be "indexed" for inflation; however, the reduction in income tax will probably be more than offset by the increase in social security taxes. Both the social security tax rate and the wage base on which it is calculated will be increased in 1985.

The tax rate goes up from 6.7% for employees and 7.0% for employers to 7.05% for both. The wage base increases from $37,800 to $39,600. Therefore, the maximum pay-in for 1985 will be $2,791.80 each for employee and employer. That's a hefty combined increase of $406 over 1984. Self-employeds will see a rate increase from 11.3% to 11.8% on a wage base of $39,600.

Their maximum pay-in will be $4,672.80. On the benefits side, those receiving social security will get a 3.5% increase beginning in 1985. Retirees will also be permitted to earn more in 1 985 without losing social security benefits. Those under age 65 can earn $5,400 and those 65 to 69 can earn $7,320 without losing benefits. As In the past, individuals aged 70 and older can earn any amount without losing benefits.

In 1985 an individual must earn a minimum of $1,640 to be credited with four quarters of coverage; one quarter of coverage requires earnings of $410. For the first time, taxpayers may find themselves paying income tax on some of their 1984 social security benefits. A special computation must be done to determine the taxable portion, if any. To one's adjusted gross income, add (1) tax exempt interest income and (2) one-half of the social security benefits received. If this figure exceeds $25,000 for singles, $32,000 married, filing jointly, or $0 married, filing separately, the lesser of half the benefits or half the adjusted income figure that exceeds limits will be taxed.

MIDDLETON CERTIFIED PUBLIC ACCOUNTANTS 1 22 WM1 Eighth Street RochMier, IN 219-223-2107 601 South MontlceMo Wlnanwc. IN 21M4MW1 Call us, we understand business and financial concerns Individual, Partnership, Corporate Fiduciary Tax Returns Planning Estate and Gift Counseling Real Estate Transactions Financial Statements Prelections, Budgets. Goals Business Financing Investment Analysis Hoehne MMdleton, CPA Robert C.Sknpeon. CPA Donald E.Keefer. CPA A.

Smith, CPA.