The Stock Market Barometer a Study of Its Forecast Value Based On Charles H Do

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The Stock Market Barometer a Study of Its Forecast Value Based On Charles H Do
William Peter Hamilton
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On September 17, 1904, The Wall Street Journal said: "There is apparently nothing in sight to lead one to believe that railroad values are not on the whole maintaining their high position, and that as time goes on this will bring a further appreciation of prices. Much will depend on the coming win- ter, which will at all events bring a clear indication of the general trend of values. In the long run values make prices. It is safe to say that if present values are maintained, present prices are ...not on an average high enough.
"It must further be remembered that the continued increase in the production of gold is a most powerful factor, which can- not fail to be felt in the future as making for higher prices of securities other than those of fixed yield. " A Vindication of the Theory Note carefully that last line. We have satisfied ourselves that bonds held for fixed income decline when the cost of living rises, and more gold means that the gold dollar will buy less because gold is the world's accepted standard of value.


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