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Market Comment - January '20

January 2020

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.

Last February we wondered what Trump needed to do to get re-elected. Though he regards the stock market as a great barometer of the likelihood of his re-election, it is risky to rely solely on this fickle (and vulnerable) totem. We suggested that: “A foreign adventure is always a possibility. When you are losing popularity at home, engineer an overseas conflict. The theory is that your country will unite behind you. Keep an eye on Iran.”Yet markets also dislike uncertainty. The Mafia-style hit on Qasem Soleimani has created extraordinary uncertainty which can directly hurt the US, and their stock market. For example, rising oil prices.  More worrying still, a cyber attack on the soft under-belly – the US financial infrastructure. I ...

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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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