Rio Grande Herald (Rio Grande City, Tex.), Vol. 32, No. 1, Ed. 1 Thursday, January 3, 1974 Page: 4 of 20
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Stock Market Ends
Year With Sad Note
NEW YORK - The
stock market added up in-
flation, high interest rates, fluc-
tuating pressures on the dollar,
Watergate and the energy
crisis, and came up with a re-
sounding minus in 1973.
Eleven days after the year
began, a growing economic
boom helped carry two of the
major market indexes to record
closing highs: The Dow Jones
average of 30 industrials to
1051.70, and the New York
Stock Exchange composite to
65.48.
From that euphoric point, the
market fell into a broad and
steep decline for the remainder
of the year, as investors
seemed to be looking beyond
the boom that lasted most of
the year to a future filled with
question marks.
Analysts said inflation was
one of the major concerns. The
declines, they noted, began al-
most simultaneously with the
Nixon administration's move
from the mandatory controls of
Phase 2 to the voluntary ones
of Phase 3.
An additional depressant ear-
ly in the year was a fresh
round of international monetary
turmoil, which brought with it
the second devaluation of the
dollar in 18 months.
During this period, interest
rates began to climb, sparking
concern that the Federal Re-
serve Board was moving to
tighten the money supply and
raising fears of a possible cred-
it crunch.
The Watergate case mean-
while intensified, adding politi-
cal uncertainties to the clouded
economic outlook. By May the
Dow had fallen to the 880 level.
Prices rebounded in the fall.
"The shock of Watergate had
diminished and there was a
slowdown in the rapid rise in
food prices, so the market had
a good rally," said Bill Wol-
man, vice president and econo-
mist at Argus Research Corp.,
an economic consulting firm.
The Dow recovered a large
chunk of its 170-point loss, and
the market seemed headed to-
ward a major bull rally when
the Mideast war broke out and
the Arabs imposed their oil em-
bargo.
Economists began talking
about how the oil shortage
could cause a recession in 1974,
and market prices plummeted.
In a six-week period, the Dow
plunged some 200 points to a
three-year low. At its Dec. 5
nadir, the Dow stood at 788.31,
its lowest level since May 1970,
and the NYSE index touched an
all-time low of 49.05.
As the year came to an end,
the market was in the process
of trying to build a base from
which to stage a recovery.
"On the basis of fundamen-
tals, the market should have
had a strong year in 1973,"
Wolman said. Corporate profits
were up 25 to 30 per cent, and
long-term interest rates were
relatively stable and did not
lure investor funds out of the
stock market, he said.
"But a series of shocks over
Watergate and energy kept the
market in bad shape," he con-
tinued.
Ixx)king to 1974, analysts had
mixed views. "It's a great peri-
od of uncertainty," said Poole.
"Nobody knows how badly the
economy will be affected by the
energy shortage."
"Whiie it is impossible to pre-
dict if there will be any more
surprises or shockers, one must
admit that the decline in prices
so far has discounted to some
degree any unfavorable ramifi-
cations of the energy short-
age," said Shaw.
"Despite trepidation," Gor-
don said, "the market tended to
close on a note of hope, based
on the belief that out of the
Mideast peace talks will come
a basis for an easing of the oil
embargo."
Comet
Kohoutek
SAN FRANCISCO - To
some watchers of the comet
Kohoutek, the dazzling visitor
from outer space heralds the
end of the world, a new begin-
ning, or a businessman's gala-
xy of telescopes and T-shirts.
Star-struck astrologers, cul-
tists and self-described "comet
freaks" call the fiery phenome-
non a portent of war, peace,
natural disasters, the energy
crisis and further Watergate
revelations.
"The Great Comet: Warning.
Forty days and Ninevah shall
be destroyed," proclaim pam-
phlets distributed by the Chil-
dren of God fundamentalist
sect who roam Market Street.
They call the comet a
"Christmas monster" warning
of "the total downfall of Amer-
ica" as it approached its celes-
tial rendezvous with the sun.
Radio stations have been de-
luged with calls about the
comet's mellow or malignant
vibrations. "We get a lot of
crazy people on the phone tell-
ing us of their magical feelings
about it," said a spokesman for
KSAN.
"Everyone I talk to thinks
Kohoutek has an explosive kind
of energy," said Yvonne I^ewin,
who sells metaphysical books in
Berkeley.
"It's intensifying everything
in the atmosphere so that when
things are going well for
people, they're rrally going
well. And when they're bad,
they're really bad," she said.
John Perry, a psychiatrist,
said Kohoutek may seriously
disturb those who are bordering
on psychosis. "These people
are very sensitive to and upset
by any kind of new spiritual
moves or ideas," he said.
But Kohoutek bodes only
bountiful business for mer-
chants who report a boom in
sale of telescopes and binocu-
lars. Some stores report as-
tronomical sales of comet-em-
blazoned T-shirts at $4.50 each
and $6 silver rings which one
clerk said could be "con-
secrated to cast whatever spell
vou want."
A San Francisco astrologer
who calls herself lone (she
doesn't like last names) makes
these observations of the
comet:
"Kohoutek first passed
through the constellation of Vir-
go. That would mean the ban-
ishment of servants of the king.
If you substitute the head of
state, it could mean the White
House staff.
"Kohoutek currently is enter-
ing the house of Scorpio...and
this signifies great wars or
rebellion, changes of kingdoms.
rfaa&uttciay
OUR INTEREST To
help ALL RANCHERS
has led us to OPEN
ON MONDAY for
a SALE DAY!!
Because We Understand
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REMEMBER.. "W THURSDAY .nJ MONDAY
SALE: MONDAY-THURSDAY
"People Who Care About Big And Small Ranchers..."
CATTLEMEN'S EXCHANGE
21/2 MILES NORTH 281
EDINBURG
383-5671
♦ •
WHAT
ARE THE
CHANCES OF
HAVING
4
ElKTRKITY?"
Years ago. Central
Power and Light made it
possible for South Texans ,...n ,j
to start relying on
dependable, economics!
electricity nalu.
We're proud of our Ix < ;
57 years of service. And croft
now that CP1. is faced V/' .
with a growing fuel
shortage, it will take the
best of what we've always
stood for to see us through.
The problems an* ;
serious, and we're meeting
them head-on to protei t ,
your electric service. So
that you and Mrs. Janu
Thigpenof Harltngen know ant*,
where we stand, here's
what the situation i . wh •
to r.i
is si I:
i k on the amount of
' leriricity available to
.'-.cries ind businesses?
We don't think so.
An i if we told you tight
now that we have ill the
' .wers. H \\ old be
' I leading. But we .ire
• iii'h:ng for those answers.
Answers th;it will
>■ our immediate
pi ■ 'hleins . . and those
'be ' itute
II you d like to know
' 'i'OUt the >Tieil;V
in South Texas
■ i-doing about it.
hov, Vou ^ .in help.
John S|> ikei. P.O.
-■ 1 I. Corpus Chnsti.
i ■ ■ - io v
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Trejo, Raul. Rio Grande Herald (Rio Grande City, Tex.), Vol. 32, No. 1, Ed. 1 Thursday, January 3, 1974, newspaper, January 3, 1974; Rio Grande City, Texas. (https://texashistory.unt.edu/ark:/67531/metapth194442/m1/4/: accessed April 19, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Rio Grande City Public Library.