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Market Comment - April '08

April 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In recent weeks there has been extraordinary media coverage along the lines of "this is the worst it has been since the 1970s" with pages devoted to credit crunch "Survival Guides." This might be suggesting the end of the world is nigh but a quick glance back at the 1970s adds perspective: By 1972 already record unemployment was escalating. The year was punctuated by coal, rail and dock strikes, power cuts and the imposition of a three day week (as there was not enough power production to run factories for five days). The average PE ratio was an expensive 19, despite interest rates doubling during the year and inflation going into double figures. Into 1973 further cracks began to appear against the background of a consumer boom. < ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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