Time Lag?

A "victory boomlet" on the London Stock Exchange had Wall Street brokers eying their own quotations suspiciously last week. Since April the London industrial average--aided by British victory in Syria, the Nazi-Russian break and some fear of inflation--has gained 14%. Despite a slight decline last week, it was still higher at week's end than it had been since the Nazis started mopping up in the Lowlands.

U.S. market trends frequently have followed London's, after a time lag of varying duration. From war's beginning until last winter, London and New York quotations moved almost as one (see chart). Both markets slid sharply during the Lowlands campaign, hit bottom after Dunkirk and France's fall. Then began a slow recovery, interrupted by another decline with the Nazi spring successes.

But the present London boom has left Wall Street far behind. In August, while London hit new highs, Wall Street prices lazily backed and filled--mostly backed. To catch up with the London rise since last April, the Dow-Jones industrial average would have to jump about 15 points. Question-of-the-week in Wall Street: Does London's bullish market point to one in the U.S.?

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