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Show Bank Stocks May Prove Risky in 83 By Edwin Darby Writer Chicago After aii is said and done, the Sun-Time- s great autumn stock market rally owes its amazing strength to two factors: now-obvio- One. by late summer almost all stocks were trading at fire sale prices Two, when it began to appear in July that the downtrend in interest rates wus real, it became possible to figure that the economy wuuid climb out of the sick bed some day and that corporate profits would shoved off m late August, but it wasn't until October that bank stocks picked up noticeably, For the banks, theres additional reason to worry about 1983, and beyond. It's deregulation. "Deregulate any industry and you invite more players into the game, says George Morvis, president of Financial Shares Corp,, a Chicago marketing firm speciuliz mg in the financial industry, "Just louk a! what deregulation did ini tiuliy to the airline industry, "In bunking, you may well see an erosion of profits for as long as five years as the banks spend money to enter new fields and us otgher institutions invade the banking urcu. I he Salt Lake I rilumc. Satmd.iv Xum iiiIh , i 20. 19,N2 It Leaders Lveliane .Medals of Honor 'in the plus side, deregulation will promote a new entrepreneurial spirit among bankers and the good managers will come up with pro ducts and services that will generate fees and new profits Still, the lirst effect may be an erosion ol profits " And thus, some decisions about bank stocks VNKAK V Turkov iAI'i - .lor dan's King Hussein and President Kenan Ev ren exchanged their conn tries' highest medals of honor Fridjv in a ceremon.v at Cankaya Palace Hussein and Ev ren are discussing wavs to expand trade and the possibilities of military cooperu tam Hussein was scheduled to visit a major ammunition and small arms factor) later at Kirkikkah At a dinner in Hussein's hi not Thursday night. Evren pledged support for Palestinian self determination and said Middle East peace proposals by President Reagan and the Arab League should be combined to form the basis for peace talks improv e in 1983. If a Friday the 13th is considered unlucky, the number 7 is thought to be lucky. Friday the ltith of August must stand as a day that confounded the superstitious as well as many supposed experts on the stock market. That was the day investors were looking at an abysmal reading of 777 on the Dow Jones industrial index. Since then, of course, the Dow has climbed to a high of 1,065. Historic Advance It could be assumed that an historic advance of 288 points on the Dow with some of the other, broader gauges of the markets climbing even more takes care of point No. 1. Prices for most stocks arc no longer going at bargain prices. Or are they? There's the inflation argument. At 1, the Dow is no higher than it was way back when gasoline was selling at 50 cents a gallon. Then there's point No. 2, recovery and higher corporate profits. Almost all economists agree that a recovery will get under way in 1983, But theres sharp disagreement about the strength of the recovery. Outside the White House, not too many people, professional economists or otherwise, think 1983 is going to sparkle. The Congressional Budget Office holds that the gross national product will record a gain of about 3.6 percent next year. That's real gain, after inflation. But by past standards, a 3.6 percent gain in GNP is modest for a recovery. Although the long-terupward movement in stock prices would seem to be strong and enduring, investors no doubt are going to start worrying about 1983. Decisions will be made and reflected instock prices. At the moment, bank stocks might be picked as candidates for relection. Interest Kate Factor In the past, bank profits and bank stocks have shown good gains as interest rates came down. Maybe you cant get too many people to agree but bankers like low interest rates. Banks prosper on spreads or margins, the difference between what they pay for money and what they charge borrowers. During a period when rates are falling, banks have a chance to that is, increase their adjust spreads. Further, lower interest rales normally attract borrowers, so volume increases, loo. That hasnt happened yet, but it could be assumed the demand for loans will go up as a recovery becomes evident, especially if rates continue to full. A little late, all this worked for bank stocks this year, as it has in thepast. Tlic stock market boom a save $60 on Stetsons 4-in- parka -l 000-piu- n99 Reg. 180. Our mountain parka is four t prime pieces in one! (1) The liner water fowl down, 30 water fowl (70 feathers) works alone as a ski parka. (2) Zip off the sleeves for a vest! (3) The light poplin shell acts alone as a jacket, (4) Zip them together for the warmest parka around! Blue burgundy, tan burgundy, SMLXL. zip-ou- b save $35 on Stetsons 2-in- -l parka 99 Use our Christmas Deterred Billing! Purchases charged now through 30 deferred until Jan. '83 with no finance charges! Nov. 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In classic colors, waist sizes 30 to 40. wool-blen- Temporary layoffs in the industry next week will hit 18.550, down from 34,100 this week. The nations automakers will have plants running for three days next week due to the Thanksgiving holiday. GM will have a record 160,000 workers on indefinite layoff, up 3.000 from this weeks previous record 157,000. The automaker said the additional layoffs are due to cutbacks at its parts plants. GM will have 11,600 workers on temporary layoff next week. These include 5,000 at Van Nuys, Calif., 4.000 at Wilmington, Del., 1,600 at Janesville, Wis., and 1,000 at Bowling Green, Ky. Ford Motor Co. will have 48,664 indefinite layoffs, down from 48,949 this week. Ford will have 2,400 workers on temporary layoff at its Lorain, Ohio, plant. No Chrysler Increase Chrysler Corp. said it will have 42,300 workers on indefinite layoff, the same as this week. The automaker's five plants all will be operating. 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