Passage Seventeen

　　The increase in the margin rate from 50% to 70% was not an attempt to stem any rampant speculation on the part of the publicactually the market seemed technically quite strong, with public participation essentially dignifiedbut rather an attempt by the Federal Reserve Board to preserve the sound underpinnings that existed in the market. Naturally, such a move had a momentarily chilling effect upon prices but if the FRB had been preoccupied with undue speculation, the increase might have been to the 80% or even 90% level. Such an increases in the margin rate is a confirmation of a strong stock market and since 19,such increases have resulted in interim market highs over twelve months later. Obviously, there could be no guarantee that this would once again be the case, but if history is any guidelineand if business and corporate earnings were to continue on the same coursecontinued optimism over the outlook for the stock market would seem more prudent than pessimism.

　　The margin increase underscored the good rise that stocks had enjoyed for the previous yearand the fact that a 50% rate was maintained as long as it was pointed up the fact that the rise was mainly conservative in that it was concentrated in the blue chips for the most part. In past Investment Letters we have voiced the thought that speciality stocks could outperform the general market from this point. We continue to believe that this could be the case. For example, steel stocks tend to sell at certain fixed price/earnings ratios. Below a certain ratio they are considered good valueabove a certain ratio, overpriced. If a company produces a unique product it is far more difficult for market analysis to place a numerical ratio upon the companys earnings. We have also contended in the past Letters that the stock market reflects mass psychology as well as the business outlook. When investorsboth the public and the institutionsare nervous and pessimistic they definitely hesitate to buy stocks: they seek low price/earnings multiples and high yields. These same investorswhen they are in an optimistic frame of mindbecome for less preoccupied with yields and more wiling to pay a premium for accelerated growth. If the publics attitude towards the auto industry is any measure, then this period seems to have been one of optimism.

　　1. The title that best expresses the ideas of this passage is

　　[A]. A Time to Sell Stock. [B]. A Strong Stock Market

　　[C]. Raising the Margin Rate [C]. Price/earnings Ratio in Steel

　　2. When investors are pessimistic what do they do?

　　[A]. They look to the FRB for help. [B]. They buy steel

　　[C]. They buy automobile stocks. [D]. They look for high yields.

　　3. Why does the writer believe that speciality stocks could outperform the general market?

　　[A]. Because analysis have difficulty in deciding upon a fixed price/earnings ratio.

　　[B]. Because the activity had been limited to blue chips.

　　[C]. Because the rise was conservative.

　　[D]. Because of the FRB action.

　　4. When investors are optimistic, what do they do?

　　[A]. They look for accelerated growth. [B]. They buy speciality stocks.

　　[C]. They look for high yields. [C]. They are more prudent.

　　Vocabulary

　　1. margin rate 保證金率，邊際比率

　　2. rampant 無約束力，猖獗的，蔓延的

　　3. stem 遏制

　　4. stem from 滋長，源自

　　5. underpin 加強基礎，支持

　　6. underpinning 支持物，基礎(建筑物下的)

　　7. preoccupy 先占，使專心于，吸引住

　　8. undue 過分的，非法的，不適當的

　　9. interim 間歇;暫時的，間歇的

　　10. guideline 方針，指導路線

　　11. underscore 在下面劃線，強調

　　12. point up 加強，強調

　　13. bluechip 蘭籌股票

　　14. blue-chip 蘭籌的

　　15. outperform 在使用上勝過

　　16. overprice 將標價過高

　　17. numerical ratio 數率，數字比率

　　18. earnings 收益，利潤，收入

　　19. contend 競爭，堅決主張，爭論

　　20. premium 傭金，酬金

　　難句譯注

　　1. The increase in the margin rate from 50% to 70% was not an attempt to stem any rampant speculation on the part of the publicactually the market seemed technically quite strong, with public participation essentially dignifiedbut rather an attempt by the Federal Reserve Board to preserve the sound underpinnings that existed in the market.

　　[結構簡析] 是notbut句型，兩個破折號中間是插入成分;中插入一個帶with+N+participle 短語

　　[參考譯文] 保證金率從50%增長到70%，并不是想要遏制群眾方面猖獗的投機，而是聯邦儲備委員會想要保持現存于股市強勁基礎事實上股市由于群眾非常莊嚴的參與在技術上看起來相當強勁。

　　2. Obviously, there could be no guarantee that this would once again be the case, but if history is any guidelineand if business and corporate earnings were to continue on the same coursecontinued optimism over the outlook for the stock market would seem more prudent than pessimism.

　　[結構簡析] 復合句。中間有插入語if clause, 進一步說明條件。

　　[參考譯文] 顯然，不可能保證這種情況再次出現(情況再是這樣)。可是，如果歷史具有指導方針的話如果商業和公司的利潤仍然保持在同樣軌道上那么對股市前景樂觀似乎要比悲觀更精確些。

　　3. The margin increase underscored the good rise that stocks had enjoyed for the previous yearand the fact that a 50% rate was maintained as long as it was pointed up the fact that the rise was mainly conservative in that it was concentrated in the blue chips for the most part.

　　[結構簡析] 這句句子內有四個that clause：第一個that是good rise的定語從句。第二個和第三個that都是the fact that句型。但第二個the fact that中，as long as it was, 指頭一年，pointed up是謂語。第四個是in that連詞，義：因為。

　　寫作方法與文章大意

　　文章論述強勁證券市場的種種情況。首先是聯邦儲備委員會為保持強股市基礎要求保證金率增長。這種增長過去，現在，將來都能鞏固強市。其次由于絕大部分集中在蘭籌股上，使股市看好上升趨于保守，引出行業股比普通股吃香。最后是投資者心情和股市強弱有關。

　　答案祥解

　　1. B. 強勁證券市場(強市)。見難句譯注1和第一段第三句：那種保證金率的增長有力的鞏固了強勁證券市場。從19年起，這種增長導致一年來股市屢創新高。

　　A. 買出股票的時候。 C. 提高保證金率。 D. 鋼的市盈率。這三項都不對，它們只是文中涉及的方面。

　　2. D. 他尋找高業績(即公司的產量或投資收益)。見文章倒數第三句：當投資者公眾和團體機構緊張而又悲觀時，他們肯定在買進股票上舉棋不定;他們尋求低價格/利潤倍數和高額利潤。

　　A. 他們尋求聯邦儲備委員會的幫助。 B. 他們買進鋼材。 C. 他們買進汽車股票。

　　3. A. 因為在決定定價/利潤比上難以分析。見第二段第二句：在過去的投資保證上我們一直表達了這樣的思想：行業股票在使用上可能超過普通股。我們依然相信情況可能就是這樣。舉例說：鋼股往往在一定價格/利潤比上拋出。低于一定比率，可認為股是好價值，而高于一定比率就是超價。如果一個公司就生產獨一無二的產品，那市場分析就很難對公司所得定出數比。

　　B. 因為股市活動受蘭籌股所限。 C. 因為行情上升保守。這兩項見難句譯注3。 D. 由于聯邦儲備基金會的行動。

　　4. A. 他們尋求加速的增長。見文章倒數第二句：同樣是這些股民，當投資者(對股市前景)持樂觀態度時，他們不太關注(公司的)業績(產值)而愿意以高價來購買具有高成長性的股票。

Passage Seventeen

　　The increase in the margin rate from 50% to 70% was not an attempt to stem any rampant speculation on the part of the publicactually the market seemed technically quite strong, with public participation essentially dignifiedbut rather an attempt by the Federal Reserve Board to preserve the sound underpinnings that existed in the market. Naturally, such a move had a momentarily chilling effect upon prices but if the FRB had been preoccupied with undue speculation, the increase might have been to the 80% or even 90% level. Such an increases in the margin rate is a confirmation of a strong stock market and since 19,such increases have resulted in interim market highs over twelve months later. Obviously, there could be no guarantee that this would once again be the case, but if history is any guidelineand if business and corporate earnings were to continue on the same coursecontinued optimism over the outlook for the stock market would seem more prudent than pessimism.

　　The margin increase underscored the good rise that stocks had enjoyed for the previous yearand the fact that a 50% rate was maintained as long as it was pointed up the fact that the rise was mainly conservative in that it was concentrated in the blue chips for the most part. In past Investment Letters we have voiced the thought that speciality stocks could outperform the general market from this point. We continue to believe that this could be the case. For example, steel stocks tend to sell at certain fixed price/earnings ratios. Below a certain ratio they are considered good valueabove a certain ratio, overpriced. If a company produces a unique product it is far more difficult for market analysis to place a numerical ratio upon the companys earnings. We have also contended in the past Letters that the stock market reflects mass psychology as well as the business outlook. When investorsboth the public and the institutionsare nervous and pessimistic they definitely hesitate to buy stocks: they seek low price/earnings multiples and high yields. These same investorswhen they are in an optimistic frame of mindbecome for less preoccupied with yields and more wiling to pay a premium for accelerated growth. If the publics attitude towards the auto industry is any measure, then this period seems to have been one of optimism.

　　1. The title that best expresses the ideas of this passage is

　　[A]. A Time to Sell Stock. [B]. A Strong Stock Market

　　[C]. Raising the Margin Rate [C]. Price/earnings Ratio in Steel

　　2. When investors are pessimistic what do they do?

　　[A]. They look to the FRB for help. [B]. They buy steel

　　[C]. They buy automobile stocks. [D]. They look for high yields.

　　3. Why does the writer believe that speciality stocks could outperform the general market?

　　[A]. Because analysis have difficulty in deciding upon a fixed price/earnings ratio.

　　[B]. Because the activity had been limited to blue chips.

　　[C]. Because the rise was conservative.

　　[D]. Because of the FRB action.

　　4. When investors are optimistic, what do they do?

　　[A]. They look for accelerated growth. [B]. They buy speciality stocks.

　　[C]. They look for high yields. [C]. They are more prudent.

　　Vocabulary

　　1. margin rate 保證金率，邊際比率

　　2. rampant 無約束力，猖獗的，蔓延的

　　3. stem 遏制

　　4. stem from 滋長，源自

　　5. underpin 加強基礎，支持

　　6. underpinning 支持物，基礎(建筑物下的)

　　7. preoccupy 先占，使專心于，吸引住

　　8. undue 過分的，非法的，不適當的

　　9. interim 間歇;暫時的，間歇的

　　10. guideline 方針，指導路線

　　11. underscore 在下面劃線，強調

　　12. point up 加強，強調

　　13. bluechip 蘭籌股票

　　14. blue-chip 蘭籌的

　　15. outperform 在使用上勝過

　　16. overprice 將標價過高

　　17. numerical ratio 數率，數字比率

　　18. earnings 收益，利潤，收入

　　19. contend 競爭，堅決主張，爭論

　　20. premium 傭金，酬金

　　難句譯注

　　1. The increase in the margin rate from 50% to 70% was not an attempt to stem any rampant speculation on the part of the publicactually the market seemed technically quite strong, with public participation essentially dignifiedbut rather an attempt by the Federal Reserve Board to preserve the sound underpinnings that existed in the market.

　　[結構簡析] 是notbut句型，兩個破折號中間是插入成分;中插入一個帶with+N+participle 短語

　　[參考譯文] 保證金率從50%增長到70%，并不是想要遏制群眾方面猖獗的投機，而是聯邦儲備委員會想要保持現存于股市強勁基礎事實上股市由于群眾非常莊嚴的參與在技術上看起來相當強勁。

　　2. Obviously, there could be no guarantee that this would once again be the case, but if history is any guidelineand if business and corporate earnings were to continue on the same coursecontinued optimism over the outlook for the stock market would seem more prudent than pessimism.

　　[結構簡析] 復合句。中間有插入語if clause, 進一步說明條件。

　　[參考譯文] 顯然，不可能保證這種情況再次出現(情況再是這樣)。可是，如果歷史具有指導方針的話如果商業和公司的利潤仍然保持在同樣軌道上那么對股市前景樂觀似乎要比悲觀更精確些。

　　3. The margin increase underscored the good rise that stocks had enjoyed for the previous yearand the fact that a 50% rate was maintained as long as it was pointed up the fact that the rise was mainly conservative in that it was concentrated in the blue chips for the most part.

　　[結構簡析] 這句句子內有四個that clause：第一個that是good rise的定語從句。第二個和第三個that都是the fact that句型。但第二個the fact that中，as long as it was, 指頭一年，pointed up是謂語。第四個是in that連詞，義：因為。

　　寫作方法與文章大意

　　文章論述強勁證券市場的種種情況。首先是聯邦儲備委員會為保持強股市基礎要求保證金率增長。這種增長過去，現在，將來都能鞏固強市。其次由于絕大部分集中在蘭籌股上，使股市看好上升趨于保守，引出行業股比普通股吃香。最后是投資者心情和股市強弱有關。

　　答案祥解

　　1. B. 強勁證券市場(強市)。見難句譯注1和第一段第三句：那種保證金率的增長有力的鞏固了強勁證券市場。從19年起，這種增長導致一年來股市屢創新高。

　　A. 買出股票的時候。 C. 提高保證金率。 D. 鋼的市盈率。這三項都不對，它們只是文中涉及的方面。

　　2. D. 他尋找高業績(即公司的產量或投資收益)。見文章倒數第三句：當投資者公眾和團體機構緊張而又悲觀時，他們肯定在買進股票上舉棋不定;他們尋求低價格/利潤倍數和高額利潤。

　　A. 他們尋求聯邦儲備委員會的幫助。 B. 他們買進鋼材。 C. 他們買進汽車股票。

　　3. A. 因為在決定定價/利潤比上難以分析。見第二段第二句：在過去的投資保證上我們一直表達了這樣的思想：行業股票在使用上可能超過普通股。我們依然相信情況可能就是這樣。舉例說：鋼股往往在一定價格/利潤比上拋出。低于一定比率，可認為股是好價值，而高于一定比率就是超價。如果一個公司就生產獨一無二的產品，那市場分析就很難對公司所得定出數比。

　　B. 因為股市活動受蘭籌股所限。 C. 因為行情上升保守。這兩項見難句譯注3。 D. 由于聯邦儲備基金會的行動。

　　4. A. 他們尋求加速的增長。見文章倒數第二句：同樣是這些股民，當投資者(對股市前景)持樂觀態度時，他們不太關注(公司的)業績(產值)而愿意以高價來購買具有高成長性的股票。