TITLE

Charts are for Accountants

AUTHOR(S)
Ellinger, A.G.
PUB. DATE
February 1965
SOURCE
Accountancy;Feb1965, Vol. 76 Issue 858, p101
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article discusses the use of charts in accounting, particularly for investments. The article also features several charts on the subject. Though some accountants dismiss charts, they fail to realize that charts can help them keep track of the movement of investments. There are, without a doubt, successful investors who do not use price charts as well as those who rely solely on them. The first chart featured, called Consols 2½ per cent, plotted in a monthly range on a semi-logarithmic scale from the beginning of 1946. It showed the behavior of Consols in a span of nineteen years. Another chart featured, measured industrial activity from 1949 to 1952, as reported in the periodical 'Financial Times.' This chart also showed the phase of liquidation in the bear market of 1947 to 1949. Originally, it was thought that liquidation by private investors in despair round the low points of investment cycles, but it is doubtful that whether this phenomenon has been seen in the post-war period. It is equally doubtful whether the buying at the top has been any less heavy or less rash than it was in the booms before the war. The nuclear boom of 1955 and the steel boom of 1959 both occurred when the charts were giving strong signals that it was no time for buying by prudent investors.
ACCESSION #
6655048

 

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