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Market Comment - December '20

December 2020

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.

 Confidence is a vital, perhaps THE vital, driver of markets at a high level. As I write, there is evidence that confidence in the UK stock market is rising.Since the 2016 referendum, belief in the UK as an investment destination has been on the wane - there was simply too much uncertainty and investors loathe uncertainty. The result is great value - the UK stock market has not been this cheap relative to the rest of the world since the 1970s.Then along came Pfizer Monday, 9th November, and markets around the world responded with massive enthusiasm to the prospects of their vaccine. But the UK stock market in particular stood out.In just 3 days, the FTSE-100 index went up 7.99%. The UK has a lot of companie ...

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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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