Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1950-12-28
higher, or World War Ill comes,
Stock Market
Al nooA DutlNNl l'Ueartafn

And Rond Outlook Uncertain
S2, | see nothing now to indicate
that We are entering a period
Of improved International rela'
tons, The danger of war ne
mains, Until it disappears, wise
people will move out of large
homb-vulnerable cities and avoid
having Investments in such areas,
81, The Stock Averages may
wOrk somewhat higher during the
FIST half of next year, but some-
time during 1851 they viii sell
lower than current quotations,
S4, Stocks now in the best posi-
ton for 1881 should be those that
have not been popular as initiation
hedges in the past months, like
good chain store stocks,
So, Investment Trust funds, pen
sion funds, and Insurance COM
panieS will provide. an excellent
backlog Of demand for sound In
come Stocks where good values
can be demonstrated,
SO, The successful investor next
year will be the one who follows
carefully planned investment pro-
gram, Such a program will en-
phaSize diverSifeation - not only
by company and indl Stry, but also
by quality characterization will
not pay in 1881,
50, Highest-grade taxable eorpor-
ate bonds should hold in a narrow
price range during 1851, but | see
no reason for individual investors
buying them, For my forecast for
long-term government bonds, see
No, so above, The only eorpor-
alton bonds which interest me are
I CoNVZRTlRLES,
~, With income taxes slated to
increase in 1881, taX-eNempt bonds
should continue in good demand,
There has been some speculation
in these, however, and any down
ward change in the tax outlook
might cause a sudden turnabout
in prices for munieipalS, lnveS-
tors should see to it that their
bond maturitieS are carefully d.
verSi6ed, with some part of their
bond funds maturing each year.
Real Estate Activity
Win Decline
50, The real estate outlook for
1881 viii be strongly affected by
eUhs on mortgage credit, Much
Of the recent boom was the result
of easy credit. almost nothing
down and small easy payments for
years hence,
40, New home construction will
suffer a greater decline than other
lines, Non-eSsential commercial
building viii also be hit,
Al, The coming decline in new
building will throw a wet blanket
over speculation in vacant Suhur-
han lots,
I AZ, The scare caused by the Kor-
ean-China War and fears of an
early outbreak in other sections
will adversely affect the demand
Ifer big city real estate, Lower
business volumes. and the Draft
next yeSr will also curtail such
I demand,
+ as, Small SuStenanee farms should
hold up We'll in price as demand
viii he spUrred by those seeking
refuge outside the big cities, De-
mand for large commercial farms
however, should weaken as the
year progresses
a, The swing back toward rent
control will act as a further
damper on new building, There is
mo incentive to build homes for
rental income,
( as, Tighter credit controls will
make it more difficult to purchase
older residential properties, and
the prices for these should weak
en-,
46, AS building volume SlaekenS
in 1881, the quality of available
materials and workmanship should
improve, This viii help those who
have saved their money and can
pay for at least half the cost of
a new home,
Defense Orders