6 OCTOBER 1961, Page 37

Investment Notes

By CUSTOS FOR those who follow charts it was an exciting thing to see the Financial Times index of Industrial shares break through its previous 1961 low of 301, reached on July 17 just before the 7 per cent. Bank rate, and fall to the earlier low of 293 recorded at the beginning of Decem- ber, 1960. It is sad to think that the market Should entirely lose the 241 per cent. rise Which it enjoyed from December, 1960, to May, 1961, (365.7) but it is not really surprising if we con- sider the appalling news—the biggest flight from sterling since 1947 or 1957, the breakdown of the Government's economic policy and the out- break of the Berlin crisis, not to mention the threat of nuclear war. Until the fight between Mr. Lloyd and the trade unions has been re- solved the market can do nothing but wait and drift. The most hopeful thing is that the Govern- ment is at least prepared to have some planning and a wages policy and is doing its best to get inside the European Common Market. The least Pleasant is that labour refuses so far to co- operate. if it comes to a real clash the Govern- Meat must obviously stand firm. It is good to see that the market is not assuming a labour victory.

Otherwise it would go inflation-mad. .