Tape 49 - The stock market and college investment profolios
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| - | Hello again, and welcome as Professor Paul Samuelson | 0:02 |
| of MIT discusses the current economic scene. | 0:04 | |
| This series is recorded | 0:07 | |
| for Instructional Dynamics Incorporated | 0:09 | |
| for the week of May 4th, 1970. | 0:11 | |
| Professor Samuelson, we have some questions | 0:15 | |
| from subscribers that we'd like to ask to you. | 0:16 | |
| Our question from our first subscriber asks, | 0:19 | |
| what about the stock market? | 0:21 | |
| Would you comment on the rapid decline | 0:23 | |
| that has taken place recently in Wall Street? | 0:24 | |
| - | In my last tape just two weeks ago, | 0:27 |
| I ventured the opinion that the mini recession | 0:30 | |
| had just come to an end. | 0:35 | |
| Well, if that has been the case, | 0:38 | |
| certainly it appears that Wall Street | 0:41 | |
| has not yet got the message, | 0:43 | |
| because in the past two weeks | 0:46 | |
| we've seen a veritable slaughter in stock market values. | 0:47 | |
| Nothing has been immune, the blue-chips have fallen, | 0:51 | |
| the glamour growth stocks have declined enormously, | 0:55 | |
| and even more, perhaps than most people realize, | 0:59 | |
| there has been a decimation of value | 1:01 | |
| on the over-the-counter market. | 1:03 | |
| And so I naturally owe my listeners an explanation | 1:06 | |
| or an opinion on how to reconcile this worsening | 1:11 | |
| of the stock market with what I had thought | 1:16 | |
| was a bottoming out in the mini recession | 1:20 | |
| as a preliminary to an increase in real output | 1:24 | |
| and a faster growth in money output during the rest | 1:29 | |
| of this year. | 1:33 | |
| Now, of course, I never profess to be able | 1:35 | |
| to predict Wall Street's fluctuations. | 1:38 | |
| I don't know that there are any economists | 1:43 | |
| who are good at this sort of thing, | 1:46 | |
| and I'm not sure that there are non-economists | 1:49 | |
| who are good at forecasting | 1:53 | |
| what the general averages will do. | 1:55 | |
| But I do conceive it to be my function | 1:59 | |
| to try to interpret the macro-economic happenings | 2:02 | |
| which may have a bearing upon what, | 2:07 | |
| in the longer run, equity prices may do, | 2:10 | |
| so that anyone who does have his own crystal ball | 2:15 | |
| would have some of the raw materials | 2:19 | |
| out of which he might hope to make a reasoned judgment | 2:21 | |
| about stock prices. | 2:24 | |
| I do not doubt that the business community generally | 2:29 | |
| has been becoming more pessimistic. | 2:35 | |
| You remember in my last analysis I said | 2:40 | |
| that although to the macro-economic observer like myself, | 2:43 | |
| it looked as if the worst was behind us. | 2:50 | |
| Nevertheless, some very astute reporters | 2:54 | |
| on business opinion said | 2:58 | |
| that the sick first quarter earnings figures | 3:00 | |
| were just sinking in to the minds | 3:05 | |
| and consciousness of business, | 3:08 | |
| and that businessmen were becoming pessimistic | 3:09 | |
| just at a time when I was becoming more expansion-minded. | 3:13 | |
| Now, I dare say what has been happening | 3:18 | |
| in the stock market has been something of the same thing. | 3:21 | |
| I can't be sure of this, | 3:27 | |
| because one expects a certain degree of sophistication | 3:28 | |
| in the stock market, and one never knows | 3:32 | |
| whether adverse business news such as the decline | 3:35 | |
| in first quarter earnings | 3:39 | |
| has not already been fully discounted. | 3:41 | |
| We've had many a case in American history | 3:44 | |
| in which the stock market has turned up | 3:48 | |
| in the face of bad news because the market | 3:52 | |
| has been looking ahead, looking beyond the valley | 3:56 | |
| and correctly discounting what is now happening | 3:59 | |
| in favor of what is about to happen. | 4:02 | |
| So, one possibility, as a result of the stock market decline | 4:05 | |
| which I agree has been very extensive, | 4:10 | |
| is that the stock market and the astute people | 4:13 | |
| in it have picked up on their sensitive antennae | 4:18 | |
| some adverse business indications | 4:21 | |
| which my courser antennae have failed to pick up completely, | 4:25 | |
| and therefore what the market is telling us | 4:31 | |
| is I'm simply wrong in my macro-economic forecast. | 4:32 | |
| Maybe the market is telling us | 4:38 | |
| that the monetarists are correct. | 4:40 | |
| The St. Louis Federal Reserve Bank has published | 4:45 | |
| its April newsletter, | 4:48 | |
| and in that newsletter the Anderson-Carlson article | 4:51 | |
| has appeared, to which I made reference earlier. | 4:54 | |
| This is an attempt to use | 4:58 | |
| the monetarists' regression equations | 4:59 | |
| for the purpose of understanding what is happening | 5:03 | |
| and for the purpose of making a forecast | 5:05 | |
| as to what will happen. | 5:08 | |
| Now, I invite your attention to that valuable article, | 5:10 | |
| because in it, if we assume that during the year 1970 | 5:15 | |
| the money supply grows at a 3% rate per annum, | 5:21 | |
| and I think that that's a better assumption | 5:26 | |
| than that it doesn't grow at all, 0%, | 5:28 | |
| and maybe almost as good a presumption | 5:32 | |
| as to assume that it grows at 6% per annum during the year. | 5:35 | |
| Well, if we assume it grows at 3%, | 5:41 | |
| then according to Dr. Anderson | 5:44 | |
| and his collaborator Dr. Carlson, | 5:46 | |
| the real GNP will decline not only in the first quarter | 5:48 | |
| of the year, but also in the second quarter of the year, | 5:52 | |
| also in the third quarter of the year, and also, | 5:54 | |
| if I remember the numbers, | 5:56 | |
| in the fourth quarter of the year. | 5:58 | |
| That's quite inconsistent with the notion | 6:00 | |
| that the mini recession is behind us | 6:02 | |
| and that we have bottomed out. | 6:07 | |
| In fact, it is probably consistent | 6:09 | |
| with the notion that this is a mini recession, | 6:11 | |
| it probably is on this basis, a full-fledged recession. | 6:16 | |
| Now, I've looked at the numbers that have happened | 6:21 | |
| since two weeks ago. | 6:25 | |
| I do not see in the data, the leading indicators | 6:28 | |
| have come out, they have not shown a tremendous weakness. | 6:31 | |
| I do not see that the stock market | 6:36 | |
| is picking up something deeper | 6:38 | |
| than I have already communicated to you. | 6:41 | |
| There's another possibility, | 6:46 | |
| however, and I think it's a possibility | 6:47 | |
| that is worrying President Nixon, | 6:49 | |
| because he made a public announcement | 6:52 | |
| that he did not expect the stock market to fall out of bed. | 6:57 | |
| Indeed, he said in words reminiscent | 7:01 | |
| of what John D. Rockefeller said in 1929 | 7:06 | |
| after the stock market had crashed. | 7:09 | |
| John D. Rockefeller said, I and my sons | 7:11 | |
| are accumulating good common stocks. | 7:14 | |
| Well, Mr. Nixon said, if I had the money, | 7:16 | |
| I would be buying common stocks. | 7:19 | |
| So, you know what the President of the United States thinks | 7:22 | |
| that the direction for the stock market is up. | 7:25 | |
| His concern, I'm sure, and this is a concern shared | 7:29 | |
| in some degree by many economists, not all economists, | 7:33 | |
| is that the stock market is not just the bellwether, | 7:38 | |
| and not just the tail of the dog of macroeconomics, | 7:42 | |
| but perhaps there is a case here that the tail wags the dog. | 7:46 | |
| I exaggerate, all that is needed is that the tail | 7:51 | |
| has some influence upon the center of gravity of the animal. | 7:55 | |
| And so, I must address myself to the question, | 7:59 | |
| will the weakness of the stock market, | 8:02 | |
| which is undoubted, will it itself be a negative element | 8:04 | |
| in the picture in our forming our expectations | 8:10 | |
| with respect to the future? | 8:14 | |
| My answer is a conciliatory one. | 8:16 | |
| Yes, I think that the destruction | 8:19 | |
| of I suppose it must be $200 billion worth | 8:24 | |
| of net worth on paper has macro-economic effects. | 8:28 | |
| In this connection, you may have noticed | 8:35 | |
| that a Texas instant millionaire lost $400 million | 8:37 | |
| in two days in one of the new data processing companies. | 8:44 | |
| He owns 80% of a very closely held company, | 8:50 | |
| and with the market weakness, | 8:54 | |
| he found himself on paper $400 million poorer | 8:56 | |
| just in about 24 hours or 48 hours. | 9:01 | |
| Well, a wide-scale destruction of the market value, | 9:06 | |
| I think, can be expected to have some adverse affects | 9:10 | |
| upon the propensity to consume. | 9:13 | |
| It also can have some effects upon the cost | 9:16 | |
| of capital for investment purposes by firms | 9:19 | |
| who wish to issue new securities, | 9:22 | |
| new securities in order | 9:26 | |
| to finance new needed investment projects, | 9:27 | |
| or to refinance and restore depleted liquidity. | 9:31 | |
| However, these effects are moderate unless the decline | 9:37 | |
| in the value in the market lasts for a long time. | 9:42 | |
| Just as they turned out to be moderate in 1962 | 9:45 | |
| because the decline in values was not long lasting, | 9:50 | |
| it may be that they will be moderate now. | 9:54 | |
| If you look at things like the discretionary trips | 9:58 | |
| to Europe, you would expect that the decline | 10:01 | |
| in the stock market might affect them. | 10:04 | |
| Actually, according to a news item in the paper, | 10:06 | |
| the passport office is more hard pressed than ever, | 10:09 | |
| the lines and queues are longer than ever, | 10:13 | |
| so it doesn't yet appear that the absence of capital gains | 10:16 | |
| and the presence of capital losses, | 10:20 | |
| whether realized or unrealized, | 10:22 | |
| has yet had a great damper upon consumption expenditure, | 10:25 | |
| but I think this is an area to watch. | 10:30 | |
| I would say a rational reason for the markets being weak, | 10:34 | |
| you don't have to look for rational reasons, | 10:38 | |
| an irrational reason is just as good, | 10:39 | |
| and it's just as painful if you've lost your money | 10:42 | |
| as a rational reason, but a rational reason | 10:45 | |
| for the market to be weak is the fact | 10:48 | |
| that the inflation is turning out | 10:51 | |
| to be much more stubborn than almost anybody had expected. | 10:54 | |
| And so, you've had in the money market, | 10:59 | |
| in the bond market, you've had a rise in bond yields. | 11:01 | |
| I was looking at the charts of the yield on municipal bonds. | 11:08 | |
| Every Monday, I watch it, clip it out, | 11:12 | |
| put it in my wallet, and according to my memory, | 11:15 | |
| the municipal bond yield for an index of typical bonds | 11:19 | |
| had dropped about 90 basis points, | 11:25 | |
| 9/10 of a percentage point earlier this year, | 11:29 | |
| but it is now been coming back | 11:34 | |
| and instead of being 90 points down, | 11:38 | |
| you probably are scarcely 20 basis points down. | 11:41 | |
| It's not even clear that in the corporate bond market that, | 11:44 | |
| where the long term rate is concerned, | 11:48 | |
| you are below earlier peaks. | 11:50 | |
| And so it goes, the Euro Dollar rates are a bit lower | 11:53 | |
| than they were at their earlier peaks, | 11:57 | |
| the commercial paper rates are a bit lower, | 11:59 | |
| the Treasury bill rates of different durations | 12:03 | |
| are a bit lower, but they're not all that much lower, | 12:06 | |
| and if you take certain long term rates like mortgages, | 12:10 | |
| they are still probably actually climbing. | 12:12 | |
| I don't wanna make too much of this return rise, | 12:17 | |
| but it is of the sort that would explain | 12:22 | |
| why the price earnings ratios of the stocks | 12:29 | |
| would tend to fall and remember that the kind of news | 12:33 | |
| that I've been commenting on is not yet in the statistics | 12:40 | |
| and really represents an act of faith on my side. | 12:43 | |
| Let me summarize, then, what has happened | 12:48 | |
| in the last couple of weeks in the stock market | 12:51 | |
| does not yet in my mind constitute a good reason | 12:53 | |
| for reversing the forecast that I made last time. | 12:56 | |
| It has to be watched and may be a good reason | 13:02 | |
| in the future for my doing so. | 13:06 | |
| And I say this in face of the fact that it seems | 13:08 | |
| to me we still don't know too much | 13:12 | |
| about the first quarter GNP numbers. | 13:15 | |
| We do have the first preliminary estimate, | 13:17 | |
| but don't forget that this first preliminary estimate | 13:19 | |
| is based upon the two months of inventory behavior only, | 13:23 | |
| January and February, and when the March numbers come in, | 13:29 | |
| and the national income statistician | 13:32 | |
| may find himself cheerfully revising | 13:34 | |
| downward inventory accumulation for the first quarter, | 13:38 | |
| and if he does that, then the money figures | 13:42 | |
| for the GNP in the first quarter will be revised downward, | 13:45 | |
| and the real rate of decline will be found | 13:48 | |
| to be more negative than the 1.6% that was reported | 13:52 | |
| in the first provisional figures. | 13:57 | |
| This, in the short run, may have suggested | 14:00 | |
| there's a bit more weakness in the economy | 14:04 | |
| than I had been allowing for. | 14:07 | |
| Nonetheless, when you put all the numbers together | 14:10 | |
| and look at the increase in personal income | 14:13 | |
| that has been taking place as a result | 14:16 | |
| of social security increases, that's increase in benefits, | 14:17 | |
| and when you see how on a delayed basis the tax reduction | 14:22 | |
| is affecting the disposable income available to people, | 14:28 | |
| and when you look at the construction figures | 14:33 | |
| in dollar terms and housing starts, | 14:37 | |
| when you put all these pictures together, | 14:40 | |
| it would appear that inventories | 14:42 | |
| will have to go very much negative, | 14:44 | |
| more negative than anybody has stuck his neck out | 14:45 | |
| in forecasting if the second quarter | 14:49 | |
| is not to show a rather considerable upward blip | 14:53 | |
| in money or nominal GNP. | 14:57 | |
| And so the betting odds still | 15:01 | |
| are that the second quarter real GNP | 15:04 | |
| will no longer be negative. | 15:08 | |
| I noticed that both President Nixon and Dr. Stein | 15:12 | |
| of his council, in attempting to be reassuring | 15:16 | |
| to the American people, have said that real GNP | 15:23 | |
| will be up in the second half of the year. | 15:27 | |
| They have now said that it will be up in the second quarter | 15:30 | |
| of the year, and that rather surprises me | 15:33 | |
| because it seems to me it probably will be. | 15:35 | |
| It's possible that they thought this was reassuring enough, | 15:40 | |
| and it's certainly a safer thing to say | 15:43 | |
| because you won't be able to call them wrong | 15:45 | |
| if it turns out that the second quarter of the year | 15:48 | |
| does show a further continuation downward | 15:51 | |
| of the business cycle. | 15:54 | |
| Now, what other question do you have | 15:55 | |
| from any of our subscribers? | 15:58 | |
| - | Recently, Professor Samuelson, | 16:00 |
| you had an interesting Newsweek column | 16:02 | |
| on the Bundy Ford Foundation Report, | 16:04 | |
| the one that urged colleges to be more rational | 16:06 | |
| in the investment of their endowments. | 16:08 | |
| Your column was a bit too short | 16:10 | |
| for me to understand all the points you were driving at. | 16:12 | |
| Would it be appropriate for you in one | 16:15 | |
| of your future cassettes to develop your point of view | 16:16 | |
| on this matter, it's one that seems to be | 16:18 | |
| of vital interest to the financial community. | 16:20 | |
| - | I think of no time better than the present | 16:22 |
| to discuss this problem, it is an important question. | 16:25 | |
| The non-profit part of the American economy handles | 16:31 | |
| a great deal of money, | 16:36 | |
| we would have to include along with the colleges, | 16:39 | |
| universities, and foundations, I suppose, the pension funds, | 16:41 | |
| and my column was short and cryptic, so let me expand. | 16:46 | |
| First, I'd like to make clear | 16:52 | |
| that I don't wish to be critical of the Barker Report, | 16:54 | |
| this is the report that was commissioned | 17:00 | |
| by the Ford Foundation. | 17:03 | |
| I don't wish to be critical of it, | 17:05 | |
| I don't wish to sound critical of it, | 17:07 | |
| I want to air some misgivings that I would have had | 17:09 | |
| if I had been an academic member of that committee. | 17:13 | |
| The committee unanimously supported | 17:18 | |
| the final recommendations of the report | 17:23 | |
| but there were some minor dissents and two | 17:25 | |
| of the academic members of the committee, | 17:30 | |
| Professor James Lorie of the University | 17:33 | |
| of Chicago Business School, and, well, | 17:36 | |
| President Howard Bowen then of the University of Iowa, | 17:40 | |
| now Professor Howard Bowen of the Claremont Graduate School. | 17:43 | |
| Each of those men apparently had some misgivings | 17:49 | |
| that the report sounded too bullish for equities | 17:53 | |
| and did not give enough cautions that possibly bull strategy | 17:59 | |
| in the direction of equities would involve a risk. | 18:05 | |
| Now I share that feeling, I know that if you read line | 18:10 | |
| by line what the report says, | 18:15 | |
| it can be construed to be saying | 18:18 | |
| that you should have professionals run college endowments. | 18:21 | |
| Amen to that. | 18:25 | |
| It says that these professionals | 18:26 | |
| should not have trustees looking over their shoulder | 18:29 | |
| in the day-to-day operations. | 18:32 | |
| Amen to that. | 18:33 | |
| It says that the endowment funds should be those | 18:35 | |
| of permanent endowment, and if the college | 18:41 | |
| has some extraordinary liquidity needs, | 18:43 | |
| as for example if it were buying a new campus | 18:46 | |
| in the next year or so, | 18:49 | |
| then quite separate bookkeeping operations | 18:51 | |
| should take place in which investments | 18:55 | |
| are in liquid Treasury bills or in other assets. | 18:57 | |
| This is the permanent monies of the universities | 19:01 | |
| and college that the report is addressing itself to, | 19:05 | |
| and in its recommendation that these be segregated | 19:08 | |
| and handled on their own merits, one can say amen to that. | 19:16 | |
| Finally, one certainly can agree that dividends | 19:21 | |
| do not constitute, properly speaking, the income | 19:27 | |
| of a non-profit organization, | 19:32 | |
| and it's very wrong because of the need for current income | 19:35 | |
| for a college to put its money in high-yielding, | 19:39 | |
| dividend-paying stocks in preference to more dynamic, | 19:44 | |
| long run growth stocks which are plowing back most | 19:52 | |
| of their earnings into the business, | 19:56 | |
| and which therefore are paying out | 19:58 | |
| at very low current dividend in relationship | 19:59 | |
| to the value of the stock. | 20:03 | |
| It's very wrong for the professional managers | 20:05 | |
| of the portfolio to be required to go | 20:09 | |
| into these slow growing stocks | 20:12 | |
| just because they appear to provide more current income, | 20:15 | |
| and the report counsels that a number of arrangements | 20:19 | |
| can be made so that recurring capital gains | 20:24 | |
| or accruing capital gains can be tapped | 20:29 | |
| for current income purposes. | 20:34 | |
| And I definitely say amen to that. | 20:36 | |
| However, as I said in my column, | 20:39 | |
| it seems to me | 20:42 | |
| that the reader of that report | 20:43 | |
| can be forgiven if he discerns a second message. | 20:46 | |
| Why does the report contrast the records | 20:52 | |
| of colleges in the past | 20:56 | |
| and balanced mutual funds | 20:58 | |
| in a past period | 21:02 | |
| with the record of 10 large growth firms? | 21:03 | |
| The large growth funds as I remember the numbers | 21:09 | |
| averaged in a 10-year period recently. | 21:12 | |
| I suppose it was '58 to '68 or some such period, | 21:16 | |
| averaged over 14% per annum | 21:19 | |
| in the rate of the return | 21:21 | |
| if you include as we should the dividends paid out | 21:24 | |
| plus the capital gains | 21:29 | |
| which were realizable during that period, | 21:31 | |
| whereas the stodgy colleges | 21:34 | |
| and the University of Rochester | 21:38 | |
| was singled out as a commendable exception | 21:39 | |
| because of its more aggressive policy | 21:44 | |
| but the ordinary run of large colleges | 21:47 | |
| averaged only about 8% | 21:51 | |
| and if I remember, I'm not sure | 21:53 | |
| that I'm quoting this correctly | 21:54 | |
| because I don't have the report right in front of me, | 21:56 | |
| the control group with which the growth funds were compared | 21:59 | |
| some vast mutual funds they also did about, | 22:05 | |
| rather badly I should say | 22:09 | |
| as the colleges, they had only about an 8% per annum return. | 22:11 | |
| Why does the report put such a table in? | 22:15 | |
| Unless it is trying to tell us | 22:18 | |
| that either there's no crystal ball | 22:21 | |
| on the part of the committee members | 22:23 | |
| who wrote that report | 22:25 | |
| that the American economy was a dynamic economy. | 22:26 | |
| It is an economy subject to inflation | 22:31 | |
| and it is an economy which in the past | 22:34 | |
| has rewarded the equity holder who was aggressive | 22:38 | |
| more generously than the conservative investor | 22:43 | |
| who played for short-term income | 22:48 | |
| and for short-term safety. | 22:50 | |
| Why does the report, for example, | 22:54 | |
| quote the fact | 22:57 | |
| that if you had taken the Dow Jones 30 stocks, | 22:58 | |
| there'd been a slight change in group | 23:02 | |
| but that's of no moment, | 23:04 | |
| ever sine 1928 and it put a dollar in them | 23:06 | |
| and it reinvested every dollar of dividends | 23:09 | |
| and if we forget for the moment about taxes, | 23:11 | |
| as certainly colleges are entitled to do | 23:14 | |
| that they could have had a return of 8% per annum | 23:17 | |
| and this through the worst period | 23:20 | |
| of the 1929 stock market crash | 23:23 | |
| and the Great Depression of all the '30s | 23:26 | |
| and of course you would have been much better than that | 23:30 | |
| in the post-war years. | 23:32 | |
| Why does the report quote the fact | 23:35 | |
| that large investment firms | 23:40 | |
| as a matter of public record | 23:44 | |
| and I think that the 10 growth funds | 23:45 | |
| would be an example | 23:47 | |
| but knowing people in the financial community | 23:48 | |
| could assemble a dossier | 23:51 | |
| of many others showing that they have averaged | 23:54 | |
| I think it was better than 12% for 10 years running. | 23:58 | |
| I think the only reason for writing that | 24:03 | |
| would be the implicit belief | 24:07 | |
| that the future to the prudent man | 24:12 | |
| will in some sense duplicate the past | 24:15 | |
| and that the proper betting odds | 24:18 | |
| are that if you will prudently look ahead, | 24:20 | |
| say to 10 years in the future | 24:25 | |
| and if you will disregard the ups and downs | 24:27 | |
| of your portfolio in the next year or two | 24:31 | |
| and if you will not take seriously | 24:33 | |
| what is called current income as measured by dividends, | 24:37 | |
| then the aggressive equity buyer | 24:40 | |
| will do better. | 24:46 | |
| Now, if the report isn't saying that, | 24:48 | |
| I don't know what the point of the comparison | 24:52 | |
| with balanced funds would be | 24:54 | |
| and now I come to my point, | 24:58 | |
| I think that this is too cavalier a treatment | 25:00 | |
| of long-run riskiness. | 25:04 | |
| It may well be that to have the intelligence | 25:06 | |
| of some of the members who wrote that report, | 25:08 | |
| and some of the knowledge | 25:13 | |
| that you would be able to have your cake | 25:14 | |
| and eat it too. | 25:16 | |
| You would be able to be an aggressive investor | 25:16 | |
| and you would very rarely take losses. | 25:19 | |
| I don't think that the Ford Foundation's in a position | 25:21 | |
| to turn pumpkins into stage coaches | 25:25 | |
| or to turn the ordinary professional people | 25:28 | |
| who run college portfolios | 25:32 | |
| into that kind of a market genius | 25:33 | |
| or even to improve their talent | 25:36 | |
| and so, I insist that nobody knows today, | 25:39 | |
| Mac Bundy does not know, I do not know | 25:43 | |
| that balanced funds will not do better | 25:46 | |
| in the next 10 years | 25:49 | |
| than will those more heavily involved in growth stocks. | 25:50 | |
| Either you're right or you're wrong | 25:58 | |
| and nobody can say in advance which is the correct position | 26:00 | |
| and I think that the report should have taken | 26:03 | |
| a more humble and neutral position on this issue. | 26:06 | |
| In any case, I don't think it's done very much harm | 26:10 | |
| because I just saw a list of securities this last year | 26:13 | |
| that colleges have been in | 26:15 | |
| and for better or for worse, | 26:17 | |
| the report has had very little influence. | 26:19 | |
| However, it could do harm | 26:20 | |
| because if you get the equity philosophy at the wrong time, | 26:22 | |
| a message which would have been extremely valuable | 26:25 | |
| 15 years ago | 26:27 | |
| might be disastrous to learn about today. | 26:29 | |
| - | Thank you very much. | 26:34 |
| If you have any questions for Professor Samuelson, | 26:35 | |
| address them to Instructional Dynamics Incorporated, | 26:38 | |
| 166 East Superior Street, Chicago, Illinois, 60611. | 26:41 |
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