WISE INVESTMENT
AFTER a sharp fall in markets it is never easy to predict how soon recovery will come or, if it does, how long it will Iasi. Not merely is confidence shaken, but the losses, either realised or on paper, inflicted on speculators, are so severe that it takes time for wounds to heal and for initiative to raise its head. At the moment both Throgmorton Street and Wall Street are in a state of nervous convalescence during which they 'need all the help-that' good news can give them and the minimum of disturbance from outside. Excellent indications of trade prosperity at home and hopes of an Anglo-American trade agreement are buoying up investors in the London market, but Wall Street has been less favoured. Earrings reports give only an equivocal answer to those who fear trade recession and the Washington authorities do not yet seem disposed to soothe either hard-hit investors or " Big Business."
Whether markets here can shake themselves free from American influences has yet' to be seen, but I doubt if, failing a stabler Wall Street, we shall get very far. On the other hand, I shall be disappointed it within the next few weeks, America has not got over its attack of nerves and is well on the way to recovery. By that time prices here should also have Unproved, especially if the European clouds have lifted a little further. Judicious purchases of leading home in- dustrials, such as Imperial Tobacco, United 'Steel, Furness, Withy, Elder Dempster Lines are, in my view, fully justified at current levels.
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