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Market Comment - February

February 2021

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.

 In the last week or so banks and financials have been showing relative strength. This suggests longer term confidence in the UK, as a strong banking sector should go hand in hand with an economy growing in confidence, something which has not been evident for years.In contrast, more speculative stocks have struggled in recent days, particularly the travel stocks, which have been the focus of a lot of punting. They respond daily to the latest news on the virus and vaccines, and on both counts the news has been less positive.The stark differentials shine through when you look at fund sectors. For example, reviewing the performance of UK smaller company funds in the last 6 months, the difference between the best and worst ...

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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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