Investment Securities Essential Characteristic And Values Prevailing Opportuni

Cover Investment Securities Essential Characteristic And Values Prevailing Opportuni
Investment Securities Essential Characteristic And Values Prevailing Opportuni
James R Bancroft
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As a result, individuals have become care-free and look toward the future in a desire for personal self-satisfaction. Coincident with this development comes a natural increase in the prices for goods as the demand converges on goods rather than investments. Therefore, towards the end of a period of j^rosperity we see prices advancing rapidly and spending increasing, both of which have a very un- favorable effect on the prices of investment securities, the first through a decreased purchasing po...wer of the dollar and the second through a diversion of demand.
On the other hand, let us see what happens in a period of depression. A depression is usually preceded by a panic or Factors Affecting Bond Prices 29 crisis. Many firms and individuals fail. The world has ceased to look rosy and as a result the minds of individuals turn toward safety and serious thoughts in regard to what the future holds forth. Under such conditions, the abnormal demand for goods for current consumption declines abruptly.


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