The Lexington advertiser. [volume] (Lexington, Miss.) 1904-1985, 1948-01-01

there will be fewer customer pur-
chases in most stores, although each
customer may visit more stores to
shop around"
Foreign Trade
81. Our foreign trade will be less
in 1948 than in 1947. We shall help
Europe; but it will be on a more &C.
onomical and efficient scale.
%. More foreign loans will be
made during 1913; but many Of these
will be direct to business concerns
rather than to political governments
%. There will be considerable
competition from other countries in
legitimate foreign trade where the
credit is good. Other countries will
not compete with us in u "chari-
ties" but they certainly will COM
pete for all profitable business.
"a. Throughout 1948 war talk and
uprisings will continue; but no World
War III will start in 1948. WAR
PREPARATIONS WILL ACCELER-
ATE.
Labor Outlook
Is. 1913 will see an average wage
rise of 5 to z per cent. Lower income
taxes should increase buying power,
but this will be about offset by fur
Their rises in the cost of living.
rs. There need be no more unem-
ployment in 1913 than in 1947, but
Unemployment Insurance" will be
taken advantage of by too many I'M
principled people.
". Wageworkers will gradually
see that the Taft Hartley Bill puts a
checkrein only on their labor leaders,
but not on labor membership. Hence,
the bitter hatred against this bill
will gradually subside. The bill is
merely an "SEC" for labor leaders
who need it today as much as invest
ment bankers needed the SEC which
was started ten years ago.
%. Any labor legislation during
1g48 will be to amend the Taft
Hartley Bill and to raise minimum
wages.
Inflution
90. The Initiation Era which we
have forecast for several years will
remain at this stage until November
2, 1g48. There will be no reckless
printing of currency Or government
borrowing in 1948.
80. 1948 will see a public reaction
against feather bedding" work
less. jobs, and union rules will re-
suit in slow-ups. More labor-saving
machinery will be installed. The
public is gradually realizing that in
flatipn can be beaten only by in
creased production.
81. Sometime during 1948 product
ion in many lines will have caught
UP with consumption which will
prevent further price increases in
such lines.
80. There will be many initiation
and price investigations during l948.
Both the Democrats and Republi-
cans will try to lay the blame for
high prices on the other party.
Stock Market
SO. We believe that 1948 will be a
year of switching, for various rea-
sons, One of these will be an attempt
to get out of stocks of companies
which have most of their assets in
big Vulnerable : in : case : Of : war"
cities into companies whose assets
are well distributed and safe from
attack.
"a. The administration will try to
keep, the Dow-Jones Industrial Av-
erages between an upper ceiling OF
around 1876 and a floor of around 165.
Commodity spectators will be curb
ed.
35. The wisest will not try to pick
any special winners" in 1913; but
will diversity broadly and those who
have too many stocks will gradually
build up good reserves. in cash or
governments, for the big break which
will come someday.
&c.. Careful buyers of stocks will
insist on making full payment and
avoid borrowing during 1948.
Bonds
81. We are definitely bearishS on
low-coupon rate, long-term bonds.
Many of these will sell at even low
er prices in l948 than in 1947. Money
rates will gradually increase.
38. If Congress gives a good reduc-
ton in Federal taxes to investors in
high brackets, l948 will see a further
falling off in the prices of most mu-
nicipals and other tax-exempt bonds
AS indicated above, however, we dc
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 1913.
40. Investors will give much more
attention to Investigation in 194S
and not become too heavily interest
ed in railroad securities, telephone
issues and other public utilities
many of which are now selling too
high.
Reel Estate
Al. City real estate will continue