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  1. <text id=93TT1352>
  2. <title>
  3. Apr. 05, 1993: No-Fall Stocks
  4. </title>
  5. <history>
  6. TIME--The Weekly Newsmagazine--1993               
  7. Apr. 05, 1993  The Generation That Forgot God        
  8. </history>
  9. <article>
  10. <source>Time Magazine</source>
  11. <hdr>
  12. THE WEEK, Page 18
  13. BUSINESS
  14. No-Fall Stocks
  15. </hdr>
  16. <body>
  17. <p>Citibank offers a market-linked instrument that apparently can't
  18. lose
  19. </p>
  20. <p>     Derivatives, those hot "baskets" of financial products that
  21. balance risky but potentially lucrative investments with
  22. conservative ones, are at your corner bank. For people rolling
  23. over IRA and Keogh money, Citibank offers a five-year deposit
  24. account with income tied to Standard & Poor's 500 stock index.
  25. Put in $10,000 now when the S&P is 450, and if the index average
  26. climbs 150 points by 1998, Citibank will return $6,660 along
  27. with the principal. Next to a conventional five-year CD, which
  28. would pay $2,613, the stock-linked account looks like a
  29. skyscraper. Should the market dive, the bank's customer, unlike
  30. the stockholder, retains the full initial investment. He also
  31. has FDIC insurance, which no broker can match. Great upside
  32. possibilities. No downside.
  33. </p>
  34.  
  35. </body>
  36. </article>
  37. </text>
  38.  
  39.