Tabell’s Market Letter – February 01, 1957

Reprinted from The Commercial and Financial Chronicle Thursday, January 17, 1957 What’s Ahead in the Securities Market by Edmund W. Tabell Director of Institutional Research, Walston & Co. Inc. Members New York Stock Exchange. Market analysis maintains major economic trends are favorable, excepting for the wage-price inflation spiral. Notes problems posed by taxation and financing needs. For the 1958 stock market he envisages a wide trading area in 530-430 range fort he Dow-Jones Industrial Average. Stresses need for extreme selectivity, favoring air-conditioning, aircraft, airlines, cement, coal, drug, electrical equipment, machinery, metals, natural gas, oil, and steel groups; comprising defense, labor-saving or wealth-in-the-ground areas. Over the next decade, holds outlook for both business and the market is extremely constructive. Dynamic Forces Enormouse Spending for New Plant and Equipment Financing the Boom The Pressing Tax Problem Interest Rate Rise Inflationary Pressures The Stock Market and Selectivity A more Intelligent Market Extreme Irregularity Possible