The Wilmington morning star., 1946-12-28

Such prospects are not bright fol
l947; but Congress will repeal OF
amend some of the present labor
laws which are very Unfair tt
management.
Initiation
%. The Initiation Era, which we
have been %forcasting for severa.
years, will be in full swing; but
the reckless printing of currency
will not come until after 1850 The
purchasing power OF the dollar will
continue to decline.
30. All 1947 wage increases will
be distinctly inflationary.
81. Sometime during 1947 pro
duction in many lines will have
caught up with consumption, people
will have spent their savings and
then there will be a surplus Of
goods.
80. If Stalin's health continues
good, he will be the worlds most
powerful man in 1947, even from
an economic standpoint.
Stock Market
33. The rails may suffer still
further declines sometime during
1947. Certain industrial manufact-
ing and other war stocks will furth
er decline during 1947; but the Dow
Jones Industrial Averages will reg
lister higher prices sometime dur
ing 1947 than the December, 1916,
averages. All depends upon how
Labor behaves in America and how
Russia behaves abroad ana upon
what the United Nations do as to
disarmament.
"a. The safest stocks to buy
considering value, income and
safety-will continue to be Chain
store" and recreation" stocks.
IS. 1916 saw a large decline in
certain stocks compared with
averages. Switching will be the
outstanding market feature during
1947. Especially watch for bargains
in airline stocks.
So. The stock market will continue
to witness creeping general lnfla-
ton and no evidence yet exists as
to whetner the ''communistic
break" in 1916 was the beginning
Of a real bear market or only a
reaction of a bull market.
Bonds
81. Although bank loaning rates
should continue a slowly upward
tendency, interest rates in general
will remain low through 1917. The
money supply is now Is per cent
above normal and Government
financing demands continued low
rates.
38. Anticipating an expected re-
duction in Federal taxes, 1947
should see a further falling off in
the prices of most municipal and
other tax-exempt bonds.
80. Some high-grade corporation
bonds may hold steady, but sooner
or later will decline considerably.
The Federal Governments 2 1-2's,
which once sold above 106, will
sell down to par Or new , 1-2's
will be offered at par. Investors
will give more attention to diver
~sification and staggered maturities
during 1947.
40. More public utilities will be
taken over by Federal and other
Authorities" during 1947. Wise
investors will consider this posi-
bility when selecting public utility
securities.
Real Estate
Al. Suburban real estate will
continue in greater demand with
still higher prices during 1947.
a. City real estate may aold its
own due to less available space
caused by pulling down structure
to save taxes and provide parking
spaces,-also to dissemination to
build due to the present high in
f%lationary building costs. The fear
OF bombing-in case Of a ~re-opening
OF World War II-may also be a
factor.
43. Small subsistence farms will
continue to increase in price; but
large commercial farms may sell
for less in 1947 than in 1916.
"A. Building will show a consider
able increase. Contracts will be up
with advancing price. The present
scarcity of lumber, cement, bricks
and labor should begin to case up
in 1947.
As. Office and residential rents
during 1947 may be expected to
increase.
46. 1947 will see the beginning
OF the real building boom which
should have started in 1916.
Politics And Postwar Peace
At. President Truman now has
lost control of Congress and both
parties will be playing politics in
anticipation OF 1913.
48. Our foreign headaches will
become worse and more frequent
during 1947. What we are going
through to re-organize Germany
Will be repeated in other countries.
~. The Latin-American honey
moon has passed its peak. The
attitude of Argentina will extend
to other countries. Our South Amer.
lean troubles will continue to in.
crease during 1947.
50. 1947 should see more relig-
lous interest, including more
church-going, than did 1916. People
gradually are realizing that with,
out a Spiritual Awakening no peace
or other plans will be much good.
Nations cannot be depended upon