Milford chronicle., 1951-12-28
in the sales of variety and drug chains.
FOREIGN TRADE OUTLOOK

"a l believe that armament is to become
new and permanent industry, at least for many
years to come. Arplanes, tanks, artillery, guns, /
and munitions will constantly be replaced they
become obsolete. This activity will operate
much the automobile industry has operated.
forecast that this will be and more recognized
throughout 1852.
25. Barring new war developments / look for
continued shrnkage in our civilian exports during
1852. Imports, however, may rise further. Exports
to South America will be off. Total foreign trade
should not be changed much but the exporters will
be on the short end of this business with the i'm
pOrters gaining.
26. Except for war supplies it will become
more difficult to convince Congress that additional
heavy credits should be granted abroad.
q. Many domestic manufacturers will feel in
creasing competition from foreign merchandise.
cry for increased tariff protection will be heard but
no radical tariff legislation will result
MORE DEFICIT FINANCING
IS The first quarter of 1852 may actually see
a budget surplus as a result of high National In
come and increased taxation. But. Federal de-
felt will surely arise during the balance of the year
%. Government loans will gradually increase
during 1852 and there will be strengthening
of basic interest rates.
30. Government bonds will continue to be held
tightly between the floor of Federal Reserve support
purchases and the ceiling of Federal Reserve anti
imitation sales. Under such conditions price changes
should be negligible during 1852.
81. While Canada and South Africa have per-
mitted free markets" revaluatiOn of gold be-
of increases in costs of production, the Ad-
ministraOn is still opposed. The Gold Stock of the
United States is, however likely to be revalued up
ward when the nation, in the opinion of government
economists, needs another shot of initiation" This
will not be in 1852.
STOCK MARKET AND BOND OUTLOOK
30. Until the danger of war is past, wise people
who easily do will move out of large bomb
vulnerable cities and avoid having investments in
such areas
80. Sometime during 1852 stocks will sell low
than current quotations. This applies especially
TO oils and certain blue chips"
"a. Stocks now in the best position for 1857
should be many of those that have not been popular
as imitation hedges in the past months. l like goOC
chain variety stocks certain movie stocks anC
possibly the air-transportatOn issues.
35 Investment Trust funds, pension funds ant
insurance companies may provide an excellent back
log of demand for sound Income Stocks where gOo(
values be demonstrated
So Successful investors of 1852 will be thos
who have the PATIENCE to follow carefully plan
ned investment program. Such a program will EN-
phasize diversificatiOn-not only by company ant
industry. but also by quality and cash
81 Highest-grade taxable corporate bond
should hold in a narrow price range during 1852
but see reason for individual investors to bu
them unless they are CONVERTIBLES.
3S. With present high income stakes. taX-eXemp
bonds should continue in good demand. Investor
should to it that their bond maurties are care
fully diversified, with some part of their bond fund
maturing each year. AS there usually is not goo
market for tax-exempts when estate is liquidaeC
it is wise to hold only such bonds will matur
the time of ones probable death.
REAL ESTATE ACTIVITY
30 Much of the recent real estate boom wa
the result of easy credit,-almos nothing down an
small payments for years hence. Under the recer
legislation there will be fewer small homes bui
in 1852; but some credit restrictions will be mod
fed Mortgage money should soon be had on MOI
liberal terms
40 Non-esSential commercial building will
hit i'm 1952-but barring World War ii. controls wi
be lessened rather than increased
Al. The decline in new building will cuntinl
to throw a wet blanket speculation in vaca
suburban lots during 1852.
AZ. The scare caused by the KOrean-China WI
and fears of an early outbreak in other sections wi
adversely affect the demand for big city real esat
This fear however, is declining and many who hi
put their city properties up for sale are Withdraw
ing them.
43. Small sustenance farms should hold up we
in price as these continue to be valuable infatit
hedges. Demand for large commercial farms, hO'
ever, should weaken the year progresses.
Al. Any swing back toward rent control W
act as a further damper on apartment hou
building. There is yet no incentive to build HON
for rental income, although rent control is grad
ally lessening.
As Tighter credit controls will make it mo
difficult to improve older residential properu'
Hence the prices for these should weaken ey
e though these are now the best buys