The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1942-05-08
BY Roger W. 5abson


commenting upon Individual Issues
it certainly seems TO ne that the
stock market as whole Is IN
buying zone. Naturally. in view
of.conditions, the market has been
yery sensitive for some month
with the emphasis Of movement on
the downside. This has been oc'
casioned mainly by domestic indus
trial upheavals, the uncertainty
Of the tax and profits situation, and
bad news from the war areas
Position OF Foreign Markets
Considering all that Great Britain
has been through and particularly
with the Germans sitting only %
miles away from the British Isles,
one would naturally expect badly
acting London market stocks on
the London Exchange have. how
ever. steadily advanced in the face
OF falling New York pr.ces. This
is likewise true in France, Hol'
land, and Germany Ever since the
war started, common stocks have
advanced in the countries most
affected
All Of these nations hive proper
tionately larger debts than the
United States They have suffered
great amounts Of property damage.
Their tax laws are far more dras-
tic than ours. The regulations and
restrictions under which their peo
pie work, eat. and live make our
price ceilings prioity rules and
food controls seem like Child's play
Yet in the face Of conditions far
worse than any which have yet
touched our own country. foreign
stocks have advanced while the
bulk Of our own securities have
consistently moved downward
Initiation the Answer
ANY historical study Cf initiation
such as occurred both during and
after the last war shows that the
time ultimately comes when peo-
pie prefer to own real property and
good stocks rather than bonds and
cash. lnflationary forces are
steadily at work here but they are
further advanced in the countries
previously mentioned We see in
our increasing national debt. in
the scarcity of consumer goods, and
in rising prices only the first el-
fects of initiation.
Investors OF other nations are
ahead of our own group IN realiz-
ing that cash Is no longer the
t. ~. = trh fF T.
tai. Not so here as witnessed by
the large amount Of money now in
circulation Its total far exceeds
any that this country has previous
IL known. Much of this money Is
held by foreigners who fled Europe
Their fears have been communicst-
ed 10 our own people. - a result,
safe deposit boxes are at a prem
ium in most banks As ! have said
before. boarding serves no useful
purpose.
Opportunities for Profits
II the American investor Is 10
combat successfully rising prices
and rising taxes, he must have
more income and increase his capt.
tai from which his income IL de-
rived In terms Of our pEe-War-
dollar of 1889. a dollar bill today,
on the basis of wholesale prices. is
worth seyenty-six cents Hence,
II is advisa BILE that these dollars
should be put to work I do not
mean they should be used TO buy
personal and household goods for
boarding purposes Ehther, dol
lars should be used remember that
compound interest still functionsl
in legitimate investment channels.
Certain real estate is 0. X War
Savings Bonds and Stamps are
must in every investment port
folio. However, successful real
estate commitments are the excep-
ton rather than the rule and no
real estate has the markt liability OF
good common stocks. Bonds are
an ail-time high and
except in instances Of certain dis
count issues. should perhaps not
be considered at this time Thus.
We are left with stocks as offering
now the best opportunities for pro-
fit and income with which to Offset
the declining purchasing power of
the dollar
Don't Follow the Crowd
Most OF my associates and friends
are terribly bearish. They talk as