(FORTUNE Magazine) – DESPITE BEARISH economic forecasts, a mini-market crash in October, and a crisis in the savings & loan business, investors had a wonderful year in 1989. The Dow Jones Industrial Average bounded ahead 27%. Investors who picked wisely did much, much better. Compiled jointly by Wright Investors' Service and Wilshire Associates, our performance rankings are based on total return to investors, which includes reinvested dividends as well as price appreciation. This year's list separately ranks issues traded on the New York Stock Exchange, American Stock Exchange, and over-the-counter markets. Included are stocks that started 1989 at $5 or more per share, adjusted for splits. Partnership units, American Depositary Receipts, and closed-end funds are excluded (for an examination of foreign stock markets, see next story). The highest total return ever recorded on our lists was posted this past ^ year by Energy Ventures, a small oil and gas company in Houston that turned into a gusher, returning 559%. It was one of many top performers benefiting from higher oil and gas prices. Another big boost to stocks came from the ongoing trend toward corporate restructuring. Takeovers, however, were on the wane as a driving force behind stocks. Though acquisitions and leveraged buyouts helped propel stocks during the year's first half, the October market drop scuttled some deals and cooled investor interest in others. As with all stocks that rise sharply, an inevitable question arises over when to sell. That time may have already passed for investors in L.A. Gear, the best-performing stock on the New York Stock Exchange last year, with a 185% return. Made a star by the fickle winds of footwear fashion, the company has recently fallen from favor. The stock is down 33% from its November highs. Reports of selling by insiders, a Justice Department investigation of alleged underpayment of customs duties (which the company denies), and the departure of the chief financial officer in late 1989 suggest more rough weather ahead. Not all highfliers run into problems. Just the same, it's worth remembering the steeper a stock climbs, the farther it may fall.

CHART: NOT AVAILABLE CREDIT: Wright Investors' Service, Wilshire Associates CAPTION: NEW YORK STOCK EXCHANGE THE 10 WORST THE 50 BEST

CHART: NOT AVAILABLE CREDIT: Wright Investors' Service, Wilshire Associates CAPTION: AMERICAN EXCHANGE THE 25 BEST THE 5 WORST

CHART: NOT AVAILABLE CREDIT: Wright Investors' Service, Wilshire Associates CAPTION: OVER-THE-COUNTER EXCHANGE THE 25 BEST THE 5 WORST