Lurking Risk Noted in Market Pace
A MOST EMPHATIC ÛÏYesÛª* is my answer to Question 5 of the questionnaire sent out by Sen. J. W. Fulbright (D-Ark.)J chairman of the Committee on Banking and Currency, which' is making a "friendlyÛ investigation of the stock market. The</br></br>A MOST EMPHATIC ÛÏYesÛª* is my answer to Question 5 of the questionnaire sent out by Sen. J. W. Fulbright (D-Ark.)J chairman of the Committee on Banking and Currency, which' is making a "friendlyÛ investigation of the stock market. The lt 1955, shouldj continue f o r| another year,l would there bej any danger toi the nation al j economy?Û \ Û¢The answer i shouts itself. I IÛªve tabulated! 10 active and highly , prized stocks bn the New York percent. Not bad, compared to what sewings banks pay. But if they rose at the. rate projected in the question, the average yields on January 1, 1956, assuming no change in dividends, would be only 2.4 per-</br></br>DuPont ........ Kastman Kodak . General Electric General Motors . RCA 		... 2.9 .. 3.2 ... 4.9 ... 2.9	2.1 1.9 2.0 3.1 1.9</br></br>Sears. Roebuck . Standard Oil (N. Union Carbide . U. S. Steel 		. . . 3.9 J.) 3.9 ... 3.0 . . . 5.1	3.3 2.8 2.3 2.9</br></br>NOR WOULD that be the lone warning. Earnings would be priced high, tooÛÓ$19.50 per dollar, the same as at the 1929 peak! That price-earnings ratio of about $19.50 to $1 would compare with the current earnings of about $13 to one.