The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-11-03
INVESTMENT VIEWS
AND THE OUTLOOK
Stock Exchange Firms Still
Are of Belief That Market
Is Bound Higher.
NERVOSITY TEMPORARY
Some Letters Contain Usual
Warnings and Point to Dan
gers in Situation.
NERyOsITY TEMPORARY


Stock Exchange houses continue to ex-
press belief that the stock market is
bound for higher levels. Every week OF
late their letters have been Of a moder-
ately bullish type and again this week
they are, with few exceptions. no less so.
All point to apparent nervousness of the
market and to ease with which stocks In
recent sessions have been depressed by
the professional bear element Never
theless they are of the opinion, in ma
jority Of cases, that the nervousness is
but temporary and is aggravated to a
large extent by the decidedly unsatis-
factory labor situation. AS one writer
expresses It. there Is confidence in final
victory over the striking and Bolshevist
forces" but the stock market Is as yet
extremely sensitive to talk of strikes.
tieups, walkouts and other similar dis
turbing influences.
West & Co. say: with the above
factors in mind. we feel that the
present is one which calls for the exer-
else Of great discrimination, the specula-
tive situation is still dangerous, but
many shares which have not been sub
ject to fragrant manipulation and which
represent an opportunity to discount ex-
pected prosperity may still be pur-
chased"
Carstairs & Co. say: Financial in
terests very generally hold to like opin-
ion and are confident that rigorous ac-
ton by the Government together with
the common sense of the rank and file of
the mine workers will combine to make
the strike one of short duration. The
40 t,,, ~ an efnrl rSata fOrAh6
time being should depend upon news de-
velopments and also upon money condi-
tions which still are the most formidable
obstacle to any marked or sustained ad-
vance in the general list"
Anderson, Bruins & Co. say me
miners are making a grave mistake.
American business men are the most
tolerant in the world. Bat they have
put up with labor's demands until they
have reached the limit. There must be
q turning point"
Market Extremely Dangerous.
]. S. Bache & Co. say: I'm market
like this so vital an uncertainty as
presents itself must have eventually a
marked influence on speculation for the
rise. The market is supported by con-
fidence in final victory over the striking
and Bolshevist forces in belief that the
treaty reservations will be put through
and financial forces released to build up
a great world trade and in the mystery
of big profits in many industrials. as yet
unrevealed."
McClave & Co. say: For the present
We consider this an extremely danger
GUS market. 1t Is dangerous to- buy on
reactions because 10 point reaction
out of a so point advance might be
only the commencement OF a further
80 point reaction. The least dangerous
way of bulling the market is by buying.
N reasonable quantities. as each stock
moves past its old high prices and then
staying with the purchase as long as the
stock continues to advance, but getting
out at the first sign Of hesitancy
whether with a profit or loss. There
is a temptation to suggest short selling.
In fact we believe that market attitude
is likely to be most profitable within
the next few weeks. The difficulty is In
selecting the stock to go short OF and
avoiding the ones which are selected as
the next subject for violent advance
II sales are made we think stop orders
should be placed little above recent
high prices just to guard against this
possibility
e w, Wagner & Co. say: THE stock
market appears to be in as strong hands
as ever and there is no evidence that
the campaign for higher prices Is ap-
preaching the eliminating point. In the
closing days this week, however, the
market looked a bit tired and there were
signs of waning enthusiasm in so far al
the immediate outlook for high pricet
industrials was concerned. Those whf
appear to be best informed as to thu
actual value behind directive speculative
issues contend that the worth OF thu
shares is only Just beginning to be ap
preciated by the general public. 1t II
an open question whether the larg'
equities built UP in the war period ant
the infiationary influences as an after
math have been fully discounted in thu
shares which are particularly affected
What appears to make the situation 81
complex that II deies analysis Is tina
| investment absorption has reduced TIN
floating supply of securities to the poin
where speculative cliques have little diff
fculty in moving prices up or down a
will"
Much Credit Absorbed.
Clark, Childs & Co. say when W,
turn to the phases OF current affair
that count for caution in the speculative
world we find matters that are NOR
presently definite and less general II
their application. Prices Of stocks ar
high. In most cases they have gone VI
enough to offset the lure of the ex
pected stock dividend decision In tn
United States Supreme Court II
time for just a little consideration o
what might happen II that decision
should not be an unqualified victory
Wall Streets loans are also dangerousl,
I enlarged In the last few days; biddinl
up a big stock issue 100 per cent, IN
short period absorbs much credit Il
considering a market for the near futur
need one argue the many menacing fea
lures of the railroad situation unde
the new legislation They are ia
reaching and threaten loss in a elias
OF securities that has been for million
OF investors synonymous with safety"
Hayden. Stone a Co. say: Genera
business, except where interrupted b
strikes, continues to be good, and Their
is no indication Of any very decide
change in the near future. Indeed, Ger
tain lines such as the steel industry
which has been a laggard so far thi
year. are just beginning to come int
their own and may conceivably hav
many months of improving earning
ahead of them. 1t is. however tn
function ~ tha stocl m n rlkat IN diocoup