OCR Text |
Show 2 l Tin Salt l,ak Tribune. Sunday, February 10. .d-G- I!u it A ' 4 Dan Dorfmaii y s Top 'i Wheres Stock Market Going? All Signs Say Up (.hkagn Tribune ut which, News Service I wouldii'1 swear to it, but I may have just discovered, by one of the best Dorfmaii barometers I know, exactly where the stin k market's going Anil that, friends, is up I was at a cocktail party the other night and for a brief moment I thought the clock had been turned back to lf8. Near ly a do.on people, including some sexy ladies, hail sur- rounded and partially hidden a man. They hunt' intently on his words. Was it some Don Juan, I wondered, talking about his or maybe sexual exploits Txl Kennedy complaining that t Jimmy Carter wont deflate him'' broker bragging No. it was a touty, about all the killings fie had made in oil and gas and mining stocks. Before I left, he had lined up orders from two guests. And for all I know, lie got hoarse that night doing a lot more business. shook my head in disbelief; this hasn't happened not since the euphoric, m 12 years stock market days of 8 And a few friends have told me of similar incidents where the market has become the No. topic of conversation on the cocktail circuit The stockbroker, it seems, has suddenly emerged as the man lor woman) the financial heart surgeon that everyone's listening to. What's going on? And what does if all mean'1 Cheeks With an Expert For some thoughts. I rang up Don Trott, 44, research chief of A. G. Becker. This is my third and interview with Trott in the past six months for a very good reason, lies probably the single hottest guy on Wall Street in railing the stea k market over the past 14 months. In that jieriod the amazing, balding Trott has correctly called each of the markets six major moves, including the October solloff and the peppy December-Januarrebound. Moreover, Trott was very recently on record with a bleak market forecast namely, that the Dow Jones Industrials eould tumble to about the 750 level in the first quarter of '80. Well, the bear has just become a bull. He's done a lotal about-facfelling me: Were in a new bull market and Id been an aggressive buyer of stocks." The chief reasons for the change of heart The public's mushrooming anxiety to beat out inflation. A surge of bank buying of equities, which Trott believes will lead to an upward revision of the market's multiple. Part of this reflects a purposely lower bank participation in the bond maiki-t- , which has been a dog over the past year. A willingness by investors to shrug off 'as a market deterrent) the effects of a recession, the bulk . d g 1 . . y e, : price-earnin- If You Own Impact Printers all types and ages Just Arrived M.P.I. $74995 We are buyers of At FIRM, The CURRENT PRICE QUOTATION Ft on or wriio giving quantity, ago, type amt rfistittry. Yon will roc a prornpt writtM reply. Computer 0 tin Room MISTY ISLES, LTD. 1515 So. St Suit 102 City. Ut. 841 IS U. Mam 2480 SaM tak Trott says, has largely lieen iliscoiintcd by the abundance of cheap stocks Now for some elaboration The individual, says Trott, has eome back into the market with tremendous force. And one of the prime reasons is a desperate el fort to find increased dollars to maintain a standard of living his wages can no longer sustain Trott notes, for example, that while the rate of inflation is running at slightly over 13 percent, the consumer's major needs fxid, energy, are actually rising at an housing and health care percent annual clip So the mail in the street s salary hikes are trailing well behind those agonizing inflation rates. And hes no dummy ; he knows hes been hit and hes ready to do something about it. Fresh Investors Part of the increased consumer vigor in the stock market is also laid to a population trend. Specifically, is the War II baby boom (from producing a population surge in the late 20s and early 30s, an age group that has yet to experience the market frustrations of the 70s Says Trott, You've got these investors who are now saying. 1 missed the real estate market, I missed hut 1 ain't gonna miss the stock the gold market about being underinvested in stocks in a favorable market environment, a situation that could cost underinvested banks some corporate pension and profit sharing accounts. New Bank Mentality? Because many bank performances in the investment arena were well below par last year, reflecting not only inadequate representation in equities, but also inadequate representation in the right equity groups (such as energy and defense), Trott sees a new hank mentality developing, one that could he a major plus fur the market. NuiV its a fact that many investuis have shied away from the equity market for fear of a recession, possibly a severe one. In fact, economists have been talking about a recession for the past couple of years, making it the best advertised one ever. But its still to happen. That being the case, it's Trott's belief that many Well-know- consumers are through being faked out. as lar as equity investments are concerned. They'll go into stocks and when they see a recession is dear-cut- . theyll believe it's half over anyway and discount its impact on the market. So for the next four to six months, as Trott sees it. the recession will Ik unimportant as a focus and it should he a fantastic money-makinperiod." Trott also has a reputation as an exollent stock picker. So I asked him how he'd play the market now. It's clear, he says, that the ongoing thrust is energy, "and you don't have to be a genius to know that this will be the market's most dynamic force for years." He takes note ot the fact that energy far outperformed the rest of the market last year and that many market analysts rate the area as fully priced, if not overpriced. But people for years used to say the same thing about IBM, says Trott, and each year IBM would end up roughly 20 percent higher than the previous year. of The sales included CHIEF ACCOUNTING OFFICER are seeking an experienced Financial who in the role of Chief Accounting Officer will have the ability to participate in negotiations relating to acquisitions, joint ventures, and partnerships, and to direct the accounting o operations of a mining company. CPA required. Minimum of 10 years experience including experience in a Big 8 firm. Extractive industry experience helpful but not essential. Salary including relocation and other benefits commensurate with experience and education, We Manager Send resume, including salary history and co this paper. requirements, to: Box 1 500 466-804- (801)486-480- 9 E 5 six two com for merciul profierties for and seven $253,500. vacant 3WILUAMSEN TRUCK EQUIPMENT 1892... $10,000 INVESTMENT Absenteeism answer: the Manpower temporary with the Tiffany necklace. She wears a sterling silver necklace by Tilfany. Because she's a stand out stand-in- . A Manpower office temporary who's earned the award with superior performances as evalu-aled by our customers. When your star secretary, typist, bookkeeper or key punch operator is absent, call us. We II provide an award winner. Or someone who's working to become one. IN 1970 WOULD BE WORTH $100,000 T0DAY! today s economy you need a safe inflation hedge investment In tnat earns u. excess of 20 a year We are one of the oldest investment companies of oar kind in America 4 X recom- s , - &J- - mended by leading financial periodicals - and have been providing an investment that has averaged a 35 - appieci-atio- n per year for the last seven years and has not dropped one cent in value in 45 years. .: A OSD l,l 4a44 hertz BUILT TO OUTLAST THEM A s !,.v MANPOWER v X v - A A A X ... x ALL! .& LICENSES 1925 Indiana Ave. SL.C.. Utah 84104 370 So. 7th East 364-656- 1 973-940- 0 SEND HIM A JOCKEY VALENTINE THAT SAYS YOU "CANT BEAR TO BE WITHOUT HIM 're essoge ' loud e red Va;ent.ne ae go e vviie is era c e:;r rl,'0. GGCked sieevea end y1 G" jGAGged C ? a GO Or noted oksrm system must be bonded and insured and must be o primary business m security olorm system installation and operations A substantia! performance bond wiH also be required of successful bidder for installation phase of proposal J DOUGLAS LAWLER-ALA T Abbott. CHRISTIANSEN PURCHASING AGENT -- WILLIS f'0'lr'Orf'iD F'r.irt''- -' Announces The Public Offering of LAND INVESTORS 1980-A A Utah Limited Partnership $5,000,000 Total Participation Partnership to be Organized to Acquire ana Hold for Appreciation A Unimproved Rea! Property in Salt Lake and Utah Counties Prospectus Available LAWLER-AL- A T fr m Wi LU S Partnership Mountain Ridge Cwcle Sandy, Uah 84070 T ptepbon 5715651 3.00 11446 SOU 8Y PROSPECTUS TO BONA FID GEWOtNJS Of UTAH ONLY CORP. BUILDING BETTER BODIES SINCE The Conference will be held Friday, February 22. 1V8Q. at 1 .30 P M. Room 307, State Copitol Building, Salt Lake City. Utah. AU parties interested in bidding the above STATE loi DWUIAMSEN CGxes further information contact Richard or Rosemary Lee. 533 4643 lots $141,800, The State of Utah wit) conduct a Pre Bid Conference on o Security Alarm System for new office to house the Utah Stole Historical Society. For s 14 for apartments and duplexes $924,590, 0-- 3 special THE STATE OF UTAH INVITATION TO ATTEND PRE-BI- D CONFERENCE FOR SECURITY SYSTEM pnqier-tie- condominiums g non URN In the case of the robust bank activity in equities, Trott says a good part of it reflects banking concerns residential for $0,552,250, ircnrcnfla market." $8,200.9-1)1- . 73 1947-196- post-Worl- d Lake Salt The Board ot Realtors reported that last week lu2 real estate proer-tie- s sold over the hoard's Multiple Listing Serv ice for a total New Bulk Scotch Whisky FOR A Million SR, nToc ks if! W tb'iM.Hri.llt lnrt'4 Lg fO rU iirjiq t 11 |