The Salina Journal from Salina, Kansas on November 18, 1981 · Page 5
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The Salina Journal from Salina, Kansas · Page 5

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Salina, Kansas
Issue Date:
Wednesday, November 18, 1981
Page:
Page 5
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Speaker sees bright future in investments : By DALE GOTER Staff Writer :: If you have money to invest, now if the time to do it, said Benjamin Korschot, 34-year veteran of the mutual fund industry. : ; Korschot, vice chairman and chief Investment officer of Waddell & Reed, Inc., was the guest speaker at an investment seminar Tuesday night at Kansas Wesleyan, sponsored by the local Waddell & Reed office. : -The 34-year veteran of the mutual funds industry was glowingly optimistic about the future of the investment industry under the Reaganomics umbrella. However, he advised investors to be extremely cautious when they take their money out of the short-term money market that has been so lucrative the past several months and begin looking for long-term investments. : Although many variables enter the picture, Korschot leaned toward a prediction that the economic climate for investors will brighten considerably in coming days. Inflation the key The key to the whole situation — and the key to Reaganomics, as well — is inflation control, Korschot said. If the Reagan administration can tolerate relatively high unemployment for a period of time, interest rates will decline, inflation will moderate and the overall situation — at least in the eyes of the investor — will brighten. Korschot said he saw three indications that the climate is right for an economic turnaround. First, prices — particularly in areas such as steel, energy and other commodities — seem to be stabilizing. Second, labor appears willing to relax its insistence on automatic cost-of-living increases. Instead, workers appear more interested in job security. Finally, the relationship between the President and Congress has been a cooperative one, he said, an absolute prerequisite for the success of Reagan's goals of cutting federal spending and balancing the budget. Beat buy Many investors have eschewed long- term investments such as the bond market because they fear inflation will eat up their earnings over the years, Korschot said. However, the market for bonds and for common stocks now may be the best buy if the economy does manage to hold the line on inflation. The bond market has been "totally unrealistically priced" in recent months as interest rates were pushed up, he said. As such, bonds are the best buy now. However, the investor must have -confidence that inflation will be con• trolled before he will commit his mon- • ey to a longterm investment, he said. "It all comes back to the Reagan . program," he said. "It all comes back • to if we're going to win the battle against inflation." Although there are indications that an economic turnaround is about to occur, Korschot acknowledged that investors should be extremely cautious as they enter the investment market. • The stock market could drop another five to 15 percent, he said, basing his prediction on previous trends. "It is time to be very cautious, because of the possibility it may go down more," he said. Massey-Ferguson idles two Canadian plants TORONTO (UPI) - Massey-Ferguson Industries Ltd. announced Monday it would temporarily shut down combines manufacturing operations at two Ontario plants and lay off about 1,750 workers because high interest rates and low farm product prices had discouraged farmers from buying machinery. The company said the shutdown and layoffs would begin.Friday and extend into February because "sales results in October and forecasts for November and December offer no hope of a pickup in the market." For the last few years agricultural implement manufacturers have suffered disappointing sales during the usual peak months of September and October, and Massey-Fergiuwn said the trend was getting worse throughout the North American market Wednesday, November 18,1981 — The Salina Journal Page 5 f FREE CHRISTMAS GIFT WRAPPING 1 PRE-HOLIDAY SAVINGS Special Groups LADIES' COORDINATED SPORTSWEAR 25% TO 33% OFF ACT II •CATALINA»RUSS» BOBBIE BROOKS TOMBOY • COLLEGE TOWN • BEAUJOLAIS Mix and match coordinating ^ pieces of famous brand sports- "Hanes too PANTY HOSE 25% OFF Reg. to 3.75 wear. Many colors and fabrics. Large Group LADIES' BETTER WINTER COATS AND JACKETS 50%'«75°/« OOFF 2nd Floor Large Rack LADIES' DRESSES Reg. to 90.00 Missy • Missy Petite • Juniors • Half Sizes ENTIRE STOCK LADIES' NEW WINTER COATS 25%™ 50% OFF IJUNIOR^MISSY • MISSY PETITE • HALF SIZE 2nd Floor Ladies' BRUSHED NYLON GOWNS 9,99 Reg. to 22.00 2nd Floor Ladies' UNDERSCENE BRAS 3.89 Reg, 6.00 Ladle*' WINTER ROBES 18,99 Htf.la32.OO Entire Stock! LADIES' CORDUROY PANTS 25°/c OOFF *•*. to 32.00 LEATHER HANDBAGS 19,99 29.99 ftf.ta3l.OO Ladles' SHERPA LINED SUEDE GLOVES 9,99 Reg. 15.00 Earth tone colors. 14K Cold FIHed Post EARRINGS £•99 H9f.t9f.oo Alto UK flNftl chains $3.99 Ladies' SWEATERS 14,99»16,9$ H»g. to 22.00 Assorted Styles Ladies' BLOUSES 9,99-16,99 tog. to 24.00 Plaid Styles. Open Monday Thru Saturday 9:30-5:30p,m, Thursday 9:30-8;30 p.m. Sundays 1 to 5p.m. j

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