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Market Comment - January

January 2003

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.

Savers penalised with near-zero returns on their bank accounts stilldon't appear tempted to chase higher yields in the stockmarket and bothbenchmarks are down again this month, the FTSE-100 by 8.6% and the All-Share by 8.3%. Reflecting the widespread malaise amongst investors,the Growth Portfolio is down 6.2%. Small companies continue tofall, if only because of market noise. In normal markets, by buyingspecial situations, as most of the small caps we follow tend to be,investors can be deaf to noise. It is interesting to see some upgradesstill coming through for several companies we cover, for instance,Ottakars, Majestic and Domino's Pizza as well as public-to-privatetransactions emerging. But that hasn't stopped good compan ...

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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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