THE views expressed in these columns two weeks ago as to the fair prospects for gilt-edged securities have been abundantly justified. The reduction in Bank Rate here to 4 per cent. and the decline in Bank Rates at many other centres have been the main factors operating on markets and there is little doubt that a good deal of professional speculative buying has taken place. In some respects it is always rather regrettable—though it is . perhaps inevitable—that the " professional " operator should get ahead of the genuine investor for there can be no question that the latter needs every penny in the way of income to keep pace with taxation and other demands, and the mere speculator who _goes only for profits based upon capital appreciation pays
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no tax upon his profits. The question, however, which the investor will no doubt be asking is whether the rise is likely to go further and whether money is likely to remain cheap for a prolonged period. It is a question which no one can really answer, and I can only say that for the moment the indications favour the likelihood of the low money rates continuing for some months.