Boom in Common Stocks?

What will U.S. citizens buy in 1943?

With a dwindling supply of civilian goods and with some war workers already so well off they go A.W.O.L. in droves (see col. 2), nobody last week knew the real answer. But Wall Street brokers at least had a pet theory--citizens will buy common stocks. For this blithe prediction they had four hard & fast reasons: 1) there is no shortage of common stocks, 2) stocks are cheap, 3) stocks are a traditional inflation hedge, yield three or four times as much as good bonds to boot, 4) corporation taxes are likely to be boosted less than taxes on individuals.

Wall Streeters have a reputation for more wrong guesses than right. But last week they could and did point to one cheerful stockmarket sign: 1942's final week was the biggest & best of the year. In a series of million-share days (1942 average: 420,000 shares), stocks bounced to new 1942 highs, wound up the year 30% above the April lows.

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