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Market Comment - December '23

December 2023

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.

Last month we said that there is a lot of bad news priced into the UK market, and that because you can be selective, you have an edge over the fund managers forced to buy 30-60 holdings.  The news then got even better, in the short term at least. Through November there was a growing belief that a corner has been turned on inflation, and interest rates should start falling sooner than expected. Goldman Sachs were notably out on a limb suggesting UK rates could be cut as soon as February. If the GS prediction is correct, it wouldn’t be simply because inflation is much lower, but also because, perhaps mostly because, the UK economy is in a tailspin. You must be careful for what you wish! Despite the latter wrinkle, the ...

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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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