Word: bonde
(lookup in dictionary)
(lookup stats)
Dates: during 1920-1929
Sort By: most recent first
(reverse)
Recently, time rates have been considerably below bond yields, but with a tendency of late months to seek a common level. Col. Ayres believes that in the fall, with heavier commercial demands for money, time rates will rise. And this, he concludes, will result in a decline in both bond and stock prices...
...Ayres believes that the long-continued advance in securities prices will be brought to an end within the next few months. Pointing out that bond prices are now higher than they have been for eight years, and that average industrial stock prices are higher than ever before, the Colonel declares that this situation has resulted from easy credit rather than from high current earnings or brilliant prospects, and that therefore rising interest rates this fall will call a halt...
...proof of this view, Col. Ayres has charted since 1890 the average yields on 60 high-grade bonds and the current rates prevailing for 90-day "time money" on security collateral, as well as the average price for industrial stocks. As a rule, he discovers that stock prices have risen during periods when time rates were lower than bond yields, and nave fallen when time rates were higher than yields...
Stocks and bond prices are high, commodity prices are in general firm or else rising, business activity increases. If affairs follow precedent, the fall should see larger advances of credit for commercial purposes, increased output, a stronger general price level and higher interest rates. The latter, together with a scarcer supply of credit, will presumably turn the stockmarket...
...gold parity bonds which Parliament authorized Finance Minister Joseph Caillaux to issue (TIME, July 6) were eagerly bought up by the bond- buying public until the number of new bonds purchased exceeded the number of old bonds to be redeemed...