Milford chronicle., 1948-01-02
and Financial Outlook for 1913
BIZ Roger w. Bobsom
Copyright 947 Publishers Bureau IncOrporated)

Bill is merely an SEC" for labor leaders
who need it today as much as investment
bankers needed the SEC which was start
ed ten years ago.
%. Any labor legislation during 1948
will be to amend the Taft-Hartley Bill and
to raise minimum wages.
Imitation
30. The Imitation Era which we have
forecast for several years will remain at
this stage until November 2, 1948. There
will be no reckless printing of currency or
government borrowing in 1948.
80. 1948 will see a public reaction against
feather bedding" "wOrkless" jobs, and un-
ion rules which result in slow-ups. More
labOr-saving machinery will be installed.
The public is gradually realizing that in
hation can be beaten only by increased pro-
ductiOn.
81. Sometime during 1948 production in
many lines will have caught up with con-
sumption which will prevent further price
increases in such lines.
80. There will be many imitation and
price Investigations during 1948 Both the
Democrats and Republicans will try to lay
the blame for high prices on the other party
Stock Market
SS. We believe that 1948 will be a year
of switching, for various reasons. One Of
these will be an attempt to get out of stocks
Of companies which have most of their as
sets in big acknowledgements cit
les into companies whose assets are well
distributed and safe from attack.
"a. The Administration will try to keep
the DOw-JOnes Industrial Averages between
an upper ceiling of around 1856 and floor
of around 1865. Commodity spectators will
be curbed.
S5. The wisest will not try to pick any
special winners" in 1S4S; but will diver
sify broadly and those who have too many
stocks will gradually build up good re-
serves, in cash or Governments, for the big
break which will come some day
S6. Careful buyers of stocks will insist
on making full payment and avoid borrow
ing during 1948 .
Bonds
81. We are definitely bearish on low
coupon rate, lOng-term bonds. Many of
these will sell at even lower prices in 1948
than in, 1917 Money rates win gradually
increase.
SS. II Congress gives a good reduction
in Federal taxes to investors in high brack-
cts, 1948 will see a further falling of in the
prices of most municipals and other tax
exempt bonds. AS indicated above, however,
we do not expect such a desired tax re-
ductiOn
80. In view of the large decline in many
preferred stocks during 1947, this rate Of
decline should begin to level OFF during
194S.
40. Investors will give much more atten-
tion to diversifcatiOn in 1948 and not be-
come too heavily interested in railroad Sc
curities, telephone issues and other public
utilities, many of which are now selling
too high.
Real Estate
Al City real estate will continue to hold
firm through 194S, due to less available
space caused by pulling down structures
to save taxes, to provide parking spaces,
etc. There also is disinclinatiOn to build
city property in view of the present high
infatiOnary building costs
AZ. Suburban real estate will continue
in greater demand with still higher prices
during 1948
4S. Big commercial farm acreage may
sell for less during 194S; but subsistence
farms located close to established com
munities will hold up in price.
"A. General building should increase
during 194S. Young people are gradually
getting accustomed to high building costs
and tired of living with their mothers-in-
law.
45 Both Office and residential rents will
be higher in 1948. Property owners are en-
titled to receive higher rentals. only as
such are granted will there be as much
building as there should be.
46. Mortgage rates during 194S will con-
tinue about the same as in 1947. These
rates are very favorable for those who have
the courage to build However, in 1S4s. it
will be harder to obtain mortgage loans.
Politics
AZ. Both President Truman and the Re-
publican leaders will be playing politics up
to November 2, 1948. It is now too early to
forecast the outcome of the Presidential
election. The Republicans, however, have
so bungled the price controversy that Mr..
Truman has fair chance of reelection.
4S. Congressman returning from Europe
will determine our foreign policy and take
it out of the hands of the State Department,
the Brass Hats, and even the President
himself
49. Unless illness or accident interferes
Mr.. Truman will be the Democratic candi-