RANSVESTIA

various economists on various commissions or serving banks and institu- tions, the message is clear.

6. Now the question is, what can you and I do about it? To begin with we might as well recognize that it is unavoidable and we are going to be in for much worse times than at present. Unfortunately the problem for many is simply how to survive the present high costs of living even before they can worry about tomorrow. But for those who do make enough to be able to save a little one way or another, there is not only the question of where to do the saving but a philosophy that needs to be recognized. For years and years we have all been taught to try to "make a profit" in stocks, real estate, mutual funds, diamonds, antiques, collections of var- ious things, etc., on the principle of "buy cheap, sell dear." That was good sense up to the last 5 years but not any more. The philosophy of today is not how to make money but how to preserve the assets we already have or expect to get in one way or another. And this is what prompts me to write this editorial. I'm not the most knowledgeable person in the world in this area, but I have had occasion to give quite a bit of attention to this problem for myself and thus have learned a few things which I seek to pass on to those of you who may not have had the opportunity to con- sider the situation in the way I want to describe.

7. "Where can I ‘invest' what I have to preserve it and possibly to make enough so that I can at least keep even with inflation?" That is the big question. So check these over-inflation is now at a two-digit rate, meaning anything from 10% per year upward.

Stocks: All you have to do is to look at the dismal record of the stock market for the last several years to see the answer to that yourself. Sure you can make money even in a lousy market if you are practically a pro- fessional at it and if you devote a large amount of your time to "working" the market. But I doubt there are a half dozen among those who will read this who are in that position. So stay out of the market or get out of it if you are in, take your losses like a man (woman?) and set about recouping.

Mutual Funds: They were great about 10 years ago; I made money in them then, but lost a lot in the intervening years. They are just aggrega- tions of stocks managed by a company for you so what applies to the mar- ket in general applies to the funds too. Get out and stay out.

Insurance Annuities, Pension Plans, Endowment Policies: These things pay off all right, but they pay off in a specified number of dollars

82