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Market Comment - February 22

February 2022

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 journey for UK small caps since the pandemic low is instructive, both in terms of total returns, returns versus other UK indices and how this informs your sell strategy. Since the pandemic low in March 2020, there have been some interesting trends beneath the level of the headline indices that you see every day. Here we address this in the context of the progress of the FTSE Small Cap ex IT index. This is the breakdown for phase 1 (19/03/20-08/06/20): FTSE Small cap ex IT: +45% FTSE 100: +26% FTSE World ex UK: +25% A sharp bounce by small caps, versus not just the footsie but the rest of the world. Then there was a period of drift by most indices, phase 2, which lasted until just be ...

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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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