FINANCE AND INVESTMENT
AT last we are getting evidence that, politics or no politics, financial markets are going to get on with their job. How otherwise can one explain the steady succession of new issues, many of really formidable size, of the gilt-edged and industrial equity type, at a time when political clouds are low and the horizon, if not black, is a dirty shade of grey? I admit that the response to these various issues is by no means uniform and that it is very difficult to gauge, but quite apart from outbursts of " stag " exuberance, such as brought an overwhelming success for Hertfordshire's £3000,000 loan, there has been some solid support from investors. My own feeling is that those who take their courage in their hands and employ their available funds in sound securities rather than hold on to cash are amply justified. At the worst they will be as well off as if they pinned their faith in a bank balance • at the best they will have got in on reasonable terms and had the benefit of income.
In present circumstances, I do not look for any big move- ment or any great activity in the stock markets. To take up a speculative position, either as a " bull " or a " bear," means taking a view of politics which few people are prepared to do, and unless some really significant political development comes along, I cannot see prices moving very far in either direction. Only really bad news could dislodge stock from the genuine investor, there is no speculative " bull " account to be liquidated, and equally it will require some very con- vincing evidence of better times to come to persuade enough investors of the speculative type to make fresh purchases to bring a sustained rise. So, for the present, we remain on an hour-to-hour basis. Fortunately, the undertone is good.
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