Dig Those Cats
Article Abstract:
The deadline for contributing to an Individual Retirement Account (IRA) for a tax deduction is April 16, 1984. The major question involves choosing the best investment vehicle to avoid risk, even though interest rates are expected to rise, a fixed-income is the choice of some analysts. The bond market yeilds more return than the stock market, unless the stock market advances dramatically. Bond yields are dependent on the bond return being reinvested. The amount of interest the reinvested money yields is not a certain amount. Investment in a zero-coupon bond guarantees its return. There is no reinvestment risk. Treasury note zeros are ideal for IRAs and will double your money in six years. Inflation is the only major risk to this type of investment.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1984
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Day of Reckoning
Article Abstract:
Continental Bank of Chicago is being rescued from near collapse by a federal government aid package. A group of banks is also participating in the rescue. The Continental crisis is expected to have far-reaching effects. The Federal Reserve System is not expected to tighten credit because of this. The major losers in the crisis so far have been stockholders, whose share prices have fallen dramatically. The major cause for Continental's problems are the defaults on debts by the less developed countries (LDCs). Though the bank has been losing earnings, they have foolishly persisted in paying their dividends until recently. The Continental problems throws banking's problems nationwide into relief.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1984
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