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Market Comment - July

July 2006

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.

Silver has crashed 30%, gold 20% and copper 25%.  The UKstockmarket has drifted sideways over the last month, having previouslyfallen by about 10%. So is the worst over? Almost certainly not. Athree year bull market has not completed a healthy correction after a10% fall spanning a couple of months. Periods of sideways drift, aswe’ve seen in June, are typically no more than hesitation before thepre-existing (downward) trend is resumed.Our best guess would be further falls into the Autumn, at which point there should be superb buying opportunities.There is undoubtedly a period of economic turbulence ahead, asglobal interest rates edge a touch higher, yet there are clearlyexamples of outstanding long-term value availabl ...

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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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