FINANCE AND INVESTMENT
- By CUSTOS
WELL, the dollar devaluations hare has been mercilessly run off the field, but here we are with stocks and commodities lifting their battered heads again like flowers after a storm. These are topsyturvy times in markets and the technical position is such that the slightest veerings of sentiment can influence prices quite disproportionately, but it is hard to see why a recovery should suddenly set in the moment the " world-wide inflation " rumour is well and truly scotched. The answer, one imagines, is that once again a combination of factors have kindled hope where only fear and ditspatidendl. existed before. Agreement on Spain looks measurably nearer ; Germany is at least prepared to discuss her debt liabilities in London ; in the United States COngress has adjourned ; • and in the commodity markets copper,- tin and rubber, all those rather sensitive pointers to the trend—or anticipated trend of trade—have staged a moderate ray. The City is doing its best not to get too excited, but like a hungry man in sight of food, is finding restraint rather irksome. Nobody wants to miss the boat if it is being run by the Genuine Recovery Line, but equally nobody,. is anxious to be- taken for a ride. My own view is that'll is still too early for anybody to pretend to be sure that a really sustained recovery in markets is at hand. America's business indicators have not changed from red to amber and I should hesitate to take European appeasement for granted just yet, This is not to say, however, that the outlook is no better than a month ago,' or even a week ago. An investor who is prepared to pay for stock and see things through might accumulate, say, a quarter of his intended purchases. He will thus have laid a foundation for a portfolio which, one hopes, may be gradually extended as 'the clouds lift. -
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