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Market Comment

January 2007

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.

As we enter 2007, it is not unreasonable to summarise the situationby saying that all asset classes are expensive (or certainly fullypriced) except for equities. It’s true that we have now had nearly fouryears of stockmarket recovery without a correction worthy of the namebut this in itself is no reason to panic.We went through various ways to assess value, or lack of it, in theNovember issue and reached the conclusion that where we are now isnothing like the fin de siècle feeling of 1999/2000. Nothing haschanged since November, in fact if anything the market is now a touchcheaper than it was then (fundamentally and technically).The remarkable resilience of the low inflation environment, interalia, despite a quadrupling ...

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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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