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Show THE NATIONAL ENTERPRISE, SEPTEMBER 7, 1977 17 Analysts see recession in market gloom Analysts are becoming more and more concerned that the current stock market has been dizzily dyspeptic because it is foreseeing something very unpleasant: stagflation or recession. Normally, the stock market moves six months or so in advance of the economy before a boom, wilting before a downturn. But the market is sometimes wrong, too. After all, the people who buy and sell stocks arc humans like the rest of us. and are prone to error. The informed are selling But people Renovated garage becomes home for Gardiner Advertising Twenty four years and $400,000 later, Gardiner Advertising Agency has realized its dream come true. From leased offices at 252 So. 200 E., the agency will move this week to a renovated garage at 56 W . spacious offices for Gardiner's 15 employees. The building had stood vacant for more than five years, most recently occupied by the Salt Lake Transfer Co. Hal Gardiner, founder of the agency in 1949, purchased the garage from W.K. Simms in February. Since then, Beasley Construction Co. has been at y work renovating the structure, providing the first floor to Beasley, 400 S. two-stor- Gardiner occupies; 7500 square feet of the second floor and will lease which will open an antique store and construction ice at the site. Gardiner said off- the agency invested more than $30,000 in an audio-visu- al room, equipped with two video tape machines and capacity for an eight channel programmed presentation. A $10,000 dark room will provide photoprinting capabilities for the company which, until now, has commissioned studios to print its material. Valley Bank and Trust financed renovation of the structure. Gardiner said the shingled door which hung at the . agencys entrance on 200 East has been moved to the new site. It now opens into the Gardiner supply room. pooh-poohe- d the stock market back in 1973, when its diagnostic antennae were clearly picking up advance distress signal of the 5 deluge. In asking whether the people who constitute the market are right or wrrong about the future, one disturbing sign is that informed people are clearly selling. Members of the various stock exchanges and corporate insiders, as measured by several different indices, arc selling heavily. Stock market analysts interviewed tend to feel that the market is discounting (moving in advance of) bad times -- either a recession or very slow' growth accompanied by high inflation (stagflation). Two analysts, however, think the market is just a mite addled these days, and will soon come to its senses. I think there is a good chance this market is dissaid counting a recession, d Martin Zweig, the New technician who has been bearish all year -c- orrectly so. In the economy, the leading indicators (a statistical 1973-197- so-call- ed York-base- series meant to telegraph future trends) has been weak most of the year and you see statistics suggesting there arc excessive increases in consumer debt." Zweig's index of insider s selling revealed almost of corporate executive activity on the sell side during one recent week, and of the insiders bailing out during the last month for which data are available. three-fourth- two-thir- Smart money selling Another index I watch, but dont include in my publication. is what the cash public (people who buy stocks with cash, rather than borrowed money) is doing. Normally, these people buy at the bottom and sell at the top, and theyve been selling consistently. That's three astute groups, all smart money, selling of-f- insiders, members and cash public. There aint no more, he chuckled. Zweig thinks the Dow' could easily drop another 100 points from here and is likely to dip below 800. Technician Richard Russell, author of Dowr Theory Letters, said, "It looks like the market is discounting a recession. 1 think the market may bottom in Ocober and the recession bottom next spring. Public will jump in Like Zweig, he thinks the Dowr may drop below 800, but unlike Zweig, Russell secs a very brisk rally bouncing off that bottom the classic third leg of a bull market in which the public jumps in. - flaprtka 2302 Parleys Way 484-090- 1 Money Available from your own accounts receivable. Your goodwill treated respectfully while collecting on those past due receivables. Standard Adjustment Bureau 8 East Third South 510 Judge Building-Suit- e Salt Lake City 322-120- 1 Member: American Collectors Association Inc., International w ds |