. SPECULATIVE TENDENCIES. • • It might, of course, be
argued that variable dividend securities having risen so appreciably during the past two years, much might be said as to the likelihood of an early reaction. Such, of course, may prove to be the experience of 1926, but at present all indications suggest that the public is in speculative mood and that those pursuing Stock Exchange activities are inclined to search either for stocks giving a fairly high rate of interest, thereby raising income to the requirements of present-day taxation and expenditure, or for stocks giving the likelihood of an appreciation in capital value where the activities of the tax-gatherer do not operate. Moreover, it must be remembered that even in the industrial groups, to say nothing of speculative markets like Oils, Rubbers and Mines, there are conditions not unfavourable to speculative chances. On the one hand there are indus- trial concerns where profits are already high and share !values have risen hut where expansion in business seems to be going on. On the other hand, if we turn to some of the key industries, prices have fallen to such a low level 'as to attract the attention of those who hope for better times later on. Indeed, it would not be at all surprising if some of the new year's activities and gains were to 'centre in those securities which have been the most depressed during the past few years. Nor must it be forgotten that a good many of the capital flotations themselves will be connected with industrial enter- prise and will tend to stimulate interest in industrial [ventures. So far at all events, as the first half of the year is concerned, the consensus of City opinion seems to favour financial activity of this kind with comparatively little change in general commercial conditions.
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