Word: offsets
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Nervous professionals point out that dividend yields on many stocks are averaging only around 2%, while some types of bonds pay interest of 9% or more. Right now that disparity is being more than offset by the big price gains in stocks, but there is always a chance that many investors will be tempted to switch their money out of corporate shares and into interest- bearing securities...
These disadvantages are offset, however, by the devastation of the tanker war. "In a normal world, pipelines make no sense at all," says James Akins, former U.S. Ambassador to Saudi Arabia. "But who would be so foolish as to say that anything is normal these days in the gulf?" Thomas McNaugher, a senior analyst with the Massachusetts-based Cambridge Energy Research Associates, agrees. Says he: "Pipelines are no final answer for anyone. Yet it makes sense to diversify, to provide an alternative to being held at gunpoint...
...approach will "score knockout victories again." Free traders, he says, "lack backbone." Joseph Biden uses the America's Cup races as a metaphor for the nation's standing, then declares, "To say we want to compete means we are already losing. I want to win!" Paul Simon attempts to offset his meek image with the mantra "We need someone with the courage to do the tough things...
...slump of the once robust dollar has been offset in part by bargain air fares across the Atlantic. Roundtrip tickets to such destinations as Paris, London, Vienna and Frankfurt can be found in some U.S. cities for as little as half the normal roundtrip coach fares. The cheapest tickets, though, are often restricted to certain dates and advance purchase...
Pakistan would especially like the planes to help offset the military superiority of India, Pakistan's enemy in three wars since 1947. New Delhi has already protested Washington's plans to send AWACS to Pakistan, with some effect. One U.S. official says the Reagan Administration has decided to hand over the planes only if their use is limited to the Afghan border region. Islamabad is unlikely to go along with such a requirement. The outcome of the AWACS debate may depend on who blinks first. Washington is reluctant to jeopardize its ability to help the mujahedin, and Pakistan does...