The Lexington advertiser. [volume] (Lexington, Miss.) 1904-1985, 1949-12-29
Bubson Predicts

counted for by the d~evaluation of
the English pound and other for
eign currencies.
"a. Foreign credits will con-
tinue to be granted during 1850.
but some of these will be direct by
American business firms and in
vestors. If our government will
get foreign governments to agree
that such investments will be
exempt from any new tax or
other legislation by the foreign
country in which the investments
are made, considerable progress
would be noticeable along foreign
trade channels.
Is. American interests will
have more competition from for
eign producers of raw materials
and of manufactured goods dur
ing 1850 than they had during
l949. This will benefit some Am
erican concerns, but be harmful
to others.
26. Fear of war with Russia
will continue during 1850. World
War III will come sometime; but
it will not start during 1850. Those
in large vulnerable cities should
use these years of peace to get
some small farm or country home
to which they can 60 in case of
war. Such places will be almost
unobtainable when war actually
comes.
Deficit Financing
81. The supply of money will
be increased during 1850, but the
price of government bonds will
not change much one way or the
other during 1850.
Is. In addition to the anticip-
ated Federal deficit the $3,OOO,-
000,0 being distributed as insur-
ance refunds to veterans will be
mostly spent.
20. Congress will not change
the price of gold during 1850.
Stock Market
80. Most stocks will work up
and down in about the same range
during 1850 as during 1949.
81. Stocks of companies with
assets mostly in natural resour-
ces, known as initiation stocks,
should have the greatest demand.
80. There will be more invest
ment buying for income during
1850 and utilities and companies
making labor saving machinery
may be more popular than other
industrials or railroads.
SO. The wisest investors will
keep a. fair amount of their funds
liquid throughout 1850 pending
the great break in stock prices
which will come someday.
Bonds
"a. High grade taxable corpor-
ate bonds bearing low coupon
rates should continue at about the
same prices during 1850, but of
course, they will sell for much
lower prices when money rates
increase.
35. 1850 will see a further fad
ing off in certain tax-exempt
bonds due to the new housing
authority obligations to be issued
during 1850.
Sc. The Federal reserve will
continue during 1850 the same
general policy which it followed
in 1949.
81. The importance of diversi-
fication will be given more at
tention in 1850 and wise investors
will watch their bond maturities
to see that thew are either short
or systematically staggered.
Reul Estate
80. The city real estate outlook
is uncertain. It should continue
to hold firm throughout 1850 due
to less available rental space caus-
ed by pulling down old structures
to save taxes and to provide park
ing spaces. Owing to high costs
and the fear of World War III,
there will be little inclination to
build new city property. On the
other hand, the continual move
ment out of our large cities - in
the interest of decentralization -
NAV aus prices to soften.
80. There will continue to be
p fair demand during so for SUBJ
urban real estate with a shading
of prices for large places; but
the residential construction boom
should continue well into 1850.
40. The demad for large COM
mercial farm acreage will be less
during 1850; but small susten-
anca farms, especially those To-