The sun., 1919-07-14
INVESTMENT VIEWS
AND THE OUTLOOK
Conservatism Is Keynote Of
Market Letters Issued by
Brokerage Houses.
SOME ARE MOST BULLISH
None Is of Decidedly Bearish
Complexion and Nearly
All Predict Rises.

Conservatism is the keynote OF a
large number OF the weekly market let
tiers sent out last week by brokerage
houses to their customers. A few are
downright bullish. but the majority coun-
Sci purchases for moderate turns only.
Nowhere. however. is there any evidence
of decidedly bearish attitude toward
the market nearly all expressing the
opinion that the present market Is most
certain to continue upward, moderately
Rt least. Appended are some excerpts
from those letters, giving some Idea Of
the view Of trained market observers Is
to the immediate future of security
prices:
]. S. Bache & Co. say To-day the
question OF continuation of large profits
depends, for one thing. upon the dura-
tion OF peace, and that Is so well settled
that there seems no limit. Out of the
stage of uncertainty which prevailed in
the earlier period Of the present bull
market the situation has grown into one
of assured confidence in the continuation
OF very great prosperity for at least a
number of years. Prices of industrials
are rejecting also accumulation Of
profits made during the war, which have
put many stocks into the extra safe
financial class by reason of debts cleared
away and large surpluses built up
Then, too, It Is to be considered In look
ing at reports OF current earnings that
on account Of the excess profits tax IL
Is adjudged by corporations and other
business concerns to be good policy to
charge out every cent that can be placed
in the legitimate debit--to use current
profits in terrifying the business posi-
ton In every possible way; for instance,
In building up good will through adver-
Using, &C. &C.
There probably never was a time
when so much money was being so
widely spent in advertising. This ere
ates a permanent asset, practically with
out cost, as the money would otherwise
in many concerns be paid out ir Govern
ment tax All this adds TO prospective
values The market has attained some
thing of an investment character through
the somewhat changed attitude or the
public. People bought stocks at frst ior
turn and sold out at profit. but the
market kept advancing and TO get IN
again they were compelled to pay higher
prices. Sales again resulted in the same
vay until buyers now are holding FOR
long profits, convinced that many securi-
ties are stifl selling below the value
which future great prosperity VIII give
them.
1T must always be borne in MIND
however. that after such persistent ao-
vance over a long period. II past expert
ence Is of any value. reactions are hapie
to occur. Ability to increase the carry
ing OF large amounts ut high prices IL,
after all, limited. and real shortage Oh
funds might bring about temporary hqu'-
, dation."
Block, Maloney & Co. say: AN irreg-
ular stock market Is HkalY-dnrlng -lne
gy,af.ia1tieq features.
Shipping and copper issues are populai
with traders because OF their exceiieHt
ncssibil!tles. The possibility of tying up
overseas shipping, while II looks ohiiiI-
GUS. is regarded as remote because Oh
the disastrous consequences to the pup
lie. which Is hardly likely to put up win
the suffering which would be involved
AS for copper. It is leading the way
with steel, In the revival OF general IN
dustry and we have only seen a begin
ming of the movement. which Will De
broad and far reaching. Allowing FOR q
check to trading because OF scarcity OF
money for stock operations, tnere are
chances for some moderate turns be
very conservative in purchases and nave
rood margins For the further future
we are bullish and in due time the
money situation will adjust itseh'
More Public Investing Coming.
odd Lot Revietc says: with good
many people who can never see any TOP
70 any market, the speculative issues
ur,Il undoubtedly continue to monopolize
attention, but from now on public IN
terest in the more purely investment
issues ts likely steadily to increase.
There is, in the first place, all this money
which has been made In the market.
good part OF which is now beginning 10
be .salted away in the kind OF stocks
referred to. There Is, in the SECOND
place. the great chance that IN we" OF
Ali the new financing which is to De
done and of the way in which this
financing would be facilitated by such a
deyelopnent, the old investment issues
will be taken in hand and put up to a
price where they will not compete with
the new securities which are being Of
fered.
Income. Furthermore. while II IL the
main consideration. Is not the only con-
sideration drawing attention TO the AT
Effectiveness of some OF these out ana our
investment issues. There exists, as WELL
the chance Of considerable price appre-
citation. Any number OF these stocks
having 81 a share are selling between
1ol and los, where the yield Is, roughly,
siL per cent. A per cent. yield for
these stocks would mean a price OF
around 116. II, then, as goou Hhny
people expect. they move up to a point
where the yield Is around per cent
n means a ten point rise in price"
Anderson, Bruins a Co. say: THE steel
business Of the country appears to bt
picking up and predictions have beer
made that copper will sell at % cents
a pound before September. The news ID
also favorable regarding other commodi'
ties. From now on we will have re-
ports OF Industrial companies showing
their earnings for the first half of this
wear. These statements may prove more
optimistic than we have been led Il
believe and, II so. should have n healthy
effect on the general list. OF course
with every rise the market will become
more vulnerable and reactions more
frequent But those who keep theil
accounts in good shape reed not worry
They will be in a position to purchase
good stocks on any decline"
n. 4. Housman q Co. say There II
no apparent change In tho genera
market situation, Public buying, while
perhaps, inclined to be somewhat more
cautious, Is In good volume and rather
confident on all recessions. Warning:
from the banks against overextendeC
circulation continue and It IL quite GER
tain that runaway markets will b
frowned upon"
Foreign Trade to Expand.
Halle & stiezlitz say: "commerc,
with Germany 10 being begun. A steSn