FINANCE AND INVESTMENT
STOCK markets are still the plaything of international politics and it is hard to see how there can be any change in this position in the near future. Most City people now take the view that prices will move up sharply in the early autumn, or possibly a little sooner, if political tension has not got worse, but only the really hardy optimists with a little loose money available are willing to take their seats in July. By far the larger section, even of those who are inclined to think hopefully about the political prospect, seem to be content to stand aside from speculation for the present, and who can blame them? Speculative purchases are obviously gambles on European politics and should be regarded as such and nothing else. As I have recently stressed in these notes, however, I see no Leason why the long-term investor who is prepared to pay for his stock and see things through should hold back. Many sound investments are now standing at prices which ensure that a buyer gets really good value for his money. As for this week's market performances, it is satisfactory enough so far as it goes. Wall Street's rise, although it has some justification in business improvement, has, I think, been a little too fast and, I suspect, has had the £1,000,000,000 loan to Germany rumour, which was circulating in New York ten days ago, to help it. It is possible, therefore, that London may now get a less con- vincing lead from Wall Street than the one it has been following, very cautiously, for the past fortnight. There remain, however, the sustaining influences of an immensely strong technical position and abundant evidence of industrial recovery at home. This is still a time for great caution but it is equally a time when it would be foolish for investors to sell.
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