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Market Comment - August '07

August 2007

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.

The twin pillars of the global economic boom of recent years have been the renaissance of emerging markets and low interest rates, which have triggered the recovery to new peaks of most if not all asset classes. The emerging market theme appears likely to continue for many years; the genie of 3 billion new consumers on the world stage is well and truly out of the bottle. The era of very low interest rates, on the other hand, put in place to ensure that an ugly deflation did not take hold in 2003, is over. Will the impact of this be widespread and global? Or when the tide of easy money goes out will those with no trunks be an isolated few? Previously, we have said that the US sub-prime mortgage debacle will not alone cause a globa ...

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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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