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Market Comment - December '08

December 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.

With very sharp interest rate cuts, the UK authorities have certainly created a sense that they understand the scale of the problems and the solutions. The pre-Budget Report was disappointing but this was perhaps due to concern on the part of the Chancellor over how a greater stimulus at this point might have laid the foundation for a run on sterling. Expect much more action (both conventional and unconventional) if the economic downturn does not decelerate quite soon.Some indices have suffered more than others and it is far from encouraging if you just focus on the fact that the FTSE-Small Cap index is back to where it was in 1993 and just this year the index is down 50%.Nonetheless, if you take a longer view there is enco ...

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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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