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Market Comment - January

January 2005

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.

Lots to worry about looking forward into the unfolding New Year,though there always is as the markets perennially climb a wall ofworry.  So don’t get panicked, but do be aware.The risk of a plunging US dollar has probably been given thegreatest coverage.  The root problem is that the US spends toomuch, eats too much, drinks too much, and sucks in huge volumes offoreign goods.  The counter to this is a falling dollar, but ithasn’t fallen far enough to begin to reverse this imbalance, which iswhy so many analysts expect continued falls in the dollar. Among otherthings, the falling dollar makes it tough for Eurozone exporters andputs even more pressure on a beleaguered Euro economy.In the UK, it is the over- ...

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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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