TALKS TO INVESTORS.

Auckland Star, Volume LXX, Issue 99, 29 April 1939, Page 4

TALKS TO INVESTORS.

It Tnust not he thought that the remarks made by Mr. C'. J. Green, Stock and Sharebroker, in this talk are I based on a belief that a major war is about to break out, notwithstanding the pessimistic view of many people on the international situation. One question, however, which is being asked of him and other brokers is as to how stocks ■ and shares will fare in the event of such contingency. I Now one certain effect of war on the | countries engaged is inflation. As already ■ pointed out, inflation affects currency | and fixed interest bearing securities, so j that persons with money in hand and 1 on deposit and in fixed interest bearing i securities will find that their money will I be worth less because it will take more I money to buy the real things of life. lOn the other hand, commodities and ! shares in sound industrial concerns will tend to rise in value, as against the lowered purchasing power of money. On the whole, it is Mr. Green's considered opinion that certain selected sound industrial shares are one of the best forms of investment if a major war should occur. At the same time it should be remembered that, a 9 there is sure to be increased Governmental' interference by limitation of profits in concerns directly profiting from war, certain industrials which at first sight won 111 appear to lie <jr>orl holding and buying should lie avoided. —P.B.A.