The Bluffton news. [volume] (Bluffton, Ohio) 1875-current, 1957-12-26
BabsOn s Business, Financial Forecast

I Sc. Construction activity in many
communities will decline. Older hous-
es will come on the market.
81. In many sections of the coun-
for cooperative modern apartments
than for single houses, although old
apartment houses will sell for less.
More young people and old people
will insist upon every modern con-
venience and upon locations not alb
rsolutely dependent on automobiles.
38. Well-located woodlands will con-
tinue to increase in price. This GER
tainly applies to pine wood tracts, es-
pecially in the South.
39. Canadian oil reserves should be-
gin to recover in price unless there
is rationing of gasoline in the United
States in late 1858.
40 The most important factor in
connection with real estate is the
parking problem, which is a curse of
almost every city. Suburban real es-
tate and farms owe much to the au-
ton1obile, but the automobile industry
is now reaching stage where it
could revolutionize present real es-
tate prices. We owe the automobile
industry a debt of gratitude for our
present prosperity. 1t is beliwether
of general business for 1858. 1t is
however, like everything else, subject
to the business cycle and may be a
cause of the next depression Anoth
er probable cause will be the failure
of one of the big corporations whose
stock is among the go Blue Chips
of the Dow-JoneS Industrials.
STOCK MARKET OUTLOOK
Al. The bloom is off the stock
market" We will have rallies and
reactions during 1858, but the broad
trend will be downward This is thg
first time for many years that l have
said this in my annual report. There
is too much talk about missiles
bombs, and fallout.
AZ. While the stock market has beer
going up during the past few years
the bond market has been goirg
down. The reverse will take place
during 1858. While the stock market
is going down, the bond market will
begin to creep upward. This especial,
i ly applies to tax-free bonds, the pur'
chase of which strongly recommend
49, Good cumulative non-callable
preferred stocks will also be in de-
mand during 1858 Owing to the mon
ey market, they recently suffered in
price; but owing to lack of supply,
they will be the first stocks to re-
cover. Remember, l am now recon-
mending only high-grade cumulative
non-callable preferreds.
Al. The large fortunes made in the
stock market have come from buy
ing non-dividend-paying stocks at
$500 a share or under. These will be
the first to reach a buying level. II
you are to buy these low-priced
stocks, you should seek companies
without too much cumulative pre-
ferred stock outstanding. This is
the opposite of the preferred
recommendation in paragraph 43!
As. Large bank balances will con
tnue to be a good investment in 1858
Many savings banks are now paying
three percent to three and one-hal1
per cent interest. These balances
however, should not be looked upor
as permanent investments, but rath
er as a means of enabling you tt
have cash available when common
stocks reach a low level This time
may NOT come in 1858 Here again
much depends upon President Eisen
hower's condition.
46. Although many corporation:
, interested in atomic energy, electron
les, rare metals, and other growth in
dustries will become more prosper
Gus and profitable to investors. some
of these new companies will be wipet
out. Hence, investors should be yer.
, careful in connection Herewith.
AZ. Speaking realistically, the hope
of the United States and the worlt
depends upon our spiritual relation