"Over the past 30 years, the Democrats have printed and the Republicans have borrowed," observes Insider Report (P.O. Box 84903, Phoenix, Ariz. 85071), which foresees higher stock prices. "Had you sold all your stocks and bought gold the day Jimmy Carter was inaugurated, then sold all your gold and bought stocks the day Reagan got in, you would be rolling in dough today."
- "We favor stocks trading well below intrinsic values, whether book, breakup or liquidation values," says Michael Price of Mutual Qualified Income Fund in New York City. Mutual Qualified Income is partial to troubled companies. It has found enough salvageables over the past five years to rise 143 percent, earning the highest risk-adjusted rating from Mutual Fund Sourcebook in Chicago. Recent favorites: Gillette, Texaco, Time, Storage Technology, R.H. Macy.- Standard & Poor's Outlook (25 Broadway, New York, N.Y. 10004) expects 1989 to be very kind to drug stocks for three reasons: 1) a firming dollar (U.S. drug companies derive much of their income from abroad); 2) the steady stream of new products coming to market; 3) implementation of the catastrophic health-insurance bill. The Outlook's beneficiaries of choice are Bristol-Myers and Merck, although it expects Eli Lilly, Pfizer, Syntex, Upjohn and Warner-Lambert to move significantly higher, too.
- Speaking of triple threats, Oppenheimer's ace numbers cruncher, Norman Weinger, has come up with a nifty new three-headed value detector for stocks. It singles out issues that are under book value, in the black and paying a dividend. A recent computer screen turned up 300 such companies, which Fortune magazine then sifted for the most promising. It selected six: H.F. Ahmanson, Conrail, Coors, ITT, Textron, Transamerica.
- "There's an old Wall Street rule that in a bear market, if you haven't made a new low in four months, you've made a major bottom and the decline is over," observes The Kondratieff Wave Analyst (P.O. Box 977, Crystal Lake, Ill. 60014). "The dollar hasn't made a new low in 12 months. So unless and until proven otherwise (by a bearish signal from the chart), we now have to conclude that the dollar bear market that began in February 1985 is over."
- Municipal bond funds that hold issues from only one state have quadrupled their assets since 1985 because they offer residents of that state exemption from both federal and state taxes. Forbes recently recommended a selection of such funds, all of which have expense ratios below 1 percent: Fidelity California, Safeco California, Scudder California, Putnam Massachusetts, Fidelity State Tax-Free Minnesota, Fidelity New York, Scudder New York, Fidelity State Tax-Free Ohio, Vanguard Pennsylvania.
- "The numismatic coin market has become openly bullish," declares Consultant's Certified Coin Report (P.O. Box 8277, Fountain Valley, Calif. 92728.) "MS-65 graded coins are the ones to buy if you're looking for investment gains. Morgan dollars and commemorative silver are the strongest, with peace dollars finally beginning to show some life. There are enough dates in those groups to keep nearly any buyer busy for a long time."
Investor's Notebook reflects the opinions of professionals. It does not endorse specific investments, and no endorsement is implied or should be inferred. For more information, contact the individual firms cited. (C) 1989 Universal Press Syndicate 4900 Main St., Kansas City, Mo. 64112