Andrew William Mellon last week advised investors to purchase bonds rather than stocks. Reason: the bond market is "not particularly good"; many a bond is low in price, high in interest. Some stocks. he said, were too high to be good investments and it was easier to pick out a good bond than a good stock.
Mr. Mellon's homily on what every investor knows had an immediately bullish effect on stocks rather than bonds. Reason: low money rates make bonds attractive; but low money rates also make it easier to borrow money with which to speculate in stocks. The Mellon statement was...
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