INVESTMENT MARKET.

Auckland Star, Volume LXVIII, Issue 26, 1 February 1937, Page 4

INVESTMENT MARKET.

PROSPECTS FOR 1937. MR. J. A. KITSOXS VIEWS. la the course of his annual review, Mr. J. A. Kitson, chairman, of the Chrietchuruh Stock Exchange, stated :— "The high volume at which Stock Exchange activity has been maintained, the very substantial rises in some groups, the evidence at least ot a very ready willingness to discount favours to come, may well make the investor pause for thought, for it is probable that the technical position of some markets at least is sufficiently impaired to make values vulnerable to another of those recurring international crises. It is inevitable that in a 'bull' market values will be discounted ahead. "Most leading industrials have looked intrinsically too high at any (riven time in the recent years of revival. Indeed, it is something more than a cynicism to suggest that when equities look cheap, giving really good returns, the next slump will cither have started or be in immediate prospect. "Actually the main activity and the biggest rises have been in such groups | as copper, lead and chain stores and to a lesser extent in shipping, coal, meat and wool. It is advisable for the investor to frame his list of investments to cover as far as possible the inevitable market fluctuations and lie should not overlook the fact that although commodities as a whole are rising individual commodities may fall. "It is sometimee suggested that with commodities rising and overseas trade reviving dearer money is in sight. Thetfe are two factors which will control to some extent any tendency to dearer money, the sort of managed gold standard to which the world will probably drift. and the enormous increase in gold stocks by annual production of the metal. Further, there are still vast sums which could be called 'depression accumulations' to be invested. The period of cheap money should continue for some 3 r ears to come."