Madison County Democrat. (London, Ohio) 19??-1958, 1958-01-07

:. w. Potee, Isl Elm Street, 2 pm.
ing 1858. This especially applies to
small farms.
80. Large commercial farms will
continue to prosper during 1858,
but the small farmer will continue
to suffer if dependent on farming.
33. Under an economic dictator,
farmers would receive no increas-
ed price supports. If farm prices
are fixed, they will be at lower
levels.
"a. Large cities may continue to
lose in population Large city real
estate will sell for less, for fear of
Russian missiles.
35. The growth of suburbs will
continue, although many houses
now occupied by well-paid execu-
tives will be forced on the market
as their owners lose their present
high-salaried positions.
SO. Construction activity in many
communities will decline. Older
houses will come on the market.
81. In many sections of the
country there will be a greater de-
mand 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 convenience and up
on locations not absolutely depend
ent on automobiles.
3S. Well-located woodlands will
continue to increase in price. This
certainly applies to pine wood
tracts, especially in the South.
80. Canadian oil reserves should
begin 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 estate and farms owe much to
the automobile, but the automobile
industry is now reaching stage
where it could revolutionize pres
ent real estate prices. We owe the
automobile industry debt of graf
itude for our present prosperity. II
is bellwether of general business
for 1858 It is, however, like every
thing else, subject to the business
cycle and may be a cause of the
next depression. Another probable
cause will be the failure of one of
the big corporations whose stock
is among the "30 Blue Chips" of
the Dow-Jones Industries.
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 the first time for many
years that / have said this in my
annual report. There is too much
talk about missiles, bombs, and
fallout.
Az While the stock market has
been going up during the past few
years, the bond market has been
going down. The reverse will take
place during 1858. While the stock
market is going down, the bond
market will begin to creep up
ward This especially applies to
tax-free bonds, the purchase of
which ! strongly recommend.
43. Good cumulative non-callable
preferred stock will also be in de-
mand during 1858. Owing to the
money market, they recently suf-
fered in price; but owing to lack of
supply, they will be the first
stocks to recover. Remember, / am
now recommending only high
grade cumulative non-callable pre-
ferreds.
Al. The large fortunes made in
the stock market have come from
buying non-dividend-paying stocks
at $500 a share or under. These
will be the first to reach a buying
level. If you are to buy these low
priced stocks, you should seek
companies without too much cumu-
lative preferred stock outstanding
This is the opposite of the prefer
red" recommendation in paragraph
43!
45. Large bank balances will
continue to be a good investment
in 1858. Many savings banks are
now paying 39o to 31s% interest.
These balances, however, should
not be looked upon as permanent
investments, but rather as a means
of enabling you to have cash avail
able when common stocks reach a
low level. This time may NOT
come in 1858. Here again, much
depends upon President Eisenhow-
er's condition.
as Although many corporations
! interested In atomic energy. cleo