Milford chronicle., 1959-01-02
By Roger w. Babson

4
Is. This means that it should be
more difficult, on average, to sell
I it difficult to get new funds in
1859.
long-term bonds in 1859 than in
1858 Buy only non-callable serial
bonds or bonds of reasonably short
maturities.
IL. The supply of nOn-taxable
state, municipal, and revenue bonds
will increase during 1859. This will
be due both to less readily avail
sble credit and to rising needs of
municipalities.
Is. The "fiy-in-the-ointment will
be the uncertainty of the Federal
policy regarding the new $3O,OO0,-
100000 roadbuilding program. Will
it compete with or protect toll
roads recently built? / believe this
program will not harm outstanding
Turnpike Bonds.
Is. Many investors will switch
from stocks into bonds in 1859, thus
obtaining both higher income and
better security.
20. Many investors will switch
from stocks into bonds in 1859, thus
obtaining both higher income and
better security.
20. AS imitation becomes more
serious, only short-term bond is
Sues-Other than convertible bonds
should be held to maturity. Bonds
should no longer be considered good
permanent" investments unless
they are non-taxable or convertible
on a reasonable basis.
81. The best investment policy
during 1859 will continue to be a
well-diversified portfoIio-of stocks.
short-term bonds, and cash. Every
conservative investor will keep
one-third of his portfolio liquid,
to have funds available in case of
sudden very severe drop in the
stock market. This will come some
day.
l22. AS the 1858 Congress has not
accomplished more in correcting
abuses in the Teamsters Union. the
1859 Congress will do little to i'm
prove the labor situation. There
| fore, invest in companies which
will not be subject to strikes. Banks
and utilities probably are the most
nearly immune.
%. The Taft-Hartly Act will not
be amended, nor will labor's ex-
emption from anti-monopoly laws
be removed, until after the 1860
election. Labor leaders will get
more and more power until-with
Russia's hefp-they bring on a real
depression.
"a. Due to unemployment and
the difficulty of borrowing funds
for installing automation (auto-
matte factories). the machinery in
dustry will continue quiet during
1859.
25. now see no probability that
either wages or retail prices will
be fixed" during 1859 unless Rus
sia threatens World War III.
26. Most wageworkers will be
more efficient during 1859, which
should enable some managements
to increase their productivity and
profits.
27. Executives will attend more
strictly to busin ess during 1859,
reducing time spent on luncheon
clubs, golf. etc.
28. Good building land on the
proper side of growing cities will
continue to increase in price not
withstanding decline in suburban
building. Small farmers holding
such land should not now sell.
90. Small farms without any su-
burban possibilities may well con-
slider selling to adjoining farmers
If offered a fair price in 1859.
80. Large commercial farms with
latest machinery should prosper
during 1859: but small farmers
may not do so well.
81. Pending a serious war. there
will be no radical change in the
Governments farm policy during
1859.
80. With less fear of serious war,
the real estate situation IN the
larger cities may improve; but
municipal taxes will increase.
SO. Some suburban houses now
owned by welI-paid executives will
come on the market in 1859, due to
los of positions or moves to other