The stock market crash - and after

Bibliographic data

Monograph

Identifikator:: 1815583320

URN:: urn:nbn:de:zbw-retromon-204544

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The stock market crash - and after

Place of publication:: New York

Publisher:: Macmillan

Year of publication:: 1930

Scope:: XXVI, 286 S.; graph. Darst

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIII. Flight from Bonds to Stocks

Collection:: Economics Books

Flight From Bonds to Stocks 207 ing investment trusts, investment counsel and other skilled means of diversifying the use of their funds. Naturally this enlightened process has created a tre- mendous new market for securities that in times past have gone begging. With the increased demand, the price of these formerly despised securities has risen. Thus the change in the caution factor, reducing it to a much narrower margin from the true mathe- matical value of common stocks as their element of risk have been absorbed by intelligent diversification, has helped put the stock market on its higher plateau. [t constitutes a permanent reason why this plateau will not sink again to the level of former years except for extraordinary causes. Principle of Constant Scrutiny This is more certain because of another principle which may be added to that of diversification. It is the principle of constant inspection or check-up as to the status of companies issuing stocks, and constant turnover accordingly. Of course, bonds require less inspection than stocks; hence in times past when each man was his own investor, the busy man or the lazy man preferred bonds because he could put them in his safe-deposit box and forget them, while invest- ments in common stocks required unusual care and attention in the turnover of his funds—more than he was willing or able to give. For the sound investor in common stocks must turn them over constantly, selling those that are los- ing in value and investing in those that are gaining

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