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Market Comment - January 23

January 2023

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.

Do you recall the evil Voldemort in Harry Potter? He whose name must not be mentioned? It came to mind as a tsunami of 2023 predictions hit my desk and my inbox. “The thing that must not be named” is the bear market. Predictions for financial markets, equities and bonds are based on a rich vein of economic analysis, particularly recessions and interest rates, or derivatives of financial markets, such as inverted yield curves. It is not clear that any of this is useful when it comes to small companies. In contrast, direct analysis of what is of greatest interest, the financial markets themselves, certainly can add value. You can usefully apply two layers of direct analysis to your target market. First, micro analysis, that is at a ...

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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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