Stocks Mired in Summer Slowdown

The summer vacation season has given the stock market thehard-earned rest it needed, and prices could move sideways orslightly lower in coming months, experts said. "This churning maylast through September and early October," said Allen Sinai, chiefeconomist at Lehman Brothers Global Economic Advisors. Since thestart of August, the Dow Jones industrial average has lost more than100 points, as cautious investors have cashed in some of their bigprofits from the market's nearly straight-up rally in the first halfof the year.

On Friday, the Dow index closed up 20.78 points at 4,601.40.It was off 16.20 points for the week. People who analyze marketstatistics say the recent selling has led to a deterioration in thetechnical picture - in other words, stocks could go lower. HOW MANY FUNDS? How many mutual funds should an investor buy?Forbes magazine examines the question in its Aug. 28 issue andconcludes that six funds is plenty: One domestic stock fund, oneinternational stock fund, one junk bond fund, one municipal bondfund, one Treasury or mortgage bond fund and a sixth fund of yourchoice "to try matching your own wits against the market." For thesixth fund, you might buy a small-company fund when small-companystocks look cheap, or "funds specializing in utilities, real estateor individual foreign markets." For those with limited savings,Forbes suggests buying only one diversified fund COLLEGE AID FOR ADULTS: Paying for college can be a challenge foradults going back to school. But school counselors say most peoplecan afford a higher education - even with a household to run. What'smore, older students may have some advantages. Most students canprobably count on at least some financial aid from college or othersources, including grants and scholarships, loans, work-studyprograms and waivers. Some institutions waive costs for students whomeet certain qualifications, such as dependents of deceased ordisabled veterans, law-enforcement officers or firefighters.Financial aid is generally coordinated through a school'sfinancial-aid office. READY FOR TAX '95? Draft copies of the 1995 federal income taxforms are now available for taxpayers eager to get a head startestimating their tax liability for this year. The Kiplinger TaxLetter ($56 a year, 800-544-0155) notes that copies can be requestedby writing the Internal Revenue Service, Box 25866, Richmond, Va.23289-5866. Ask for Publication 1407. New this year: Schedule H,which replaces quarterly forms for computing the "nanny tax" due onhousehold workers.