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Market Comment - August 2013

August 2013

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 birth of Prince George brought into focus an interesting comparison; 2013 versus 1982 (when William was born).In 1982 the yield on 10 year gilts was 13.8% and base interest rates were 12%, compared to 2.3% and 0.5% respectively in 2013. These numbers highlight the determination at the time to squeeze inflation out of the economy. Many were still sore from the creative destruction of the 1970s (economically, politically, socially), but with the outlook for falling inflation, a strong foundation was being laid for a bull market in equities. Only the benefit of hindsight could help us imagine how great a bull market.Since 1982 UK equities have increased by a multiple of 23, with dividends reinvested, an extraordinary outco ...

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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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