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Market Comment - July '08

July 2008

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.

In January we asked, “When can we expect persistently more buyers than sellers because that is all we need for the market to make sustainable progress?â€. We would not stress using technical analysis but it is a powerful way to get a feel for sentiment. For example, drawing a line joining a series of rising lows gives you a good sense of an uptrend (and visa versa with falling peaks) and a breach of that line suggests that the uptrend is running out of steam.A clear uptrend built from 2003 in the FTSE-100 and it peaked just above 6700 in June 2007 - a rise of just over 100%, though falling short of the all-time high in 1999 above 6900. Following this rising trend, which lasted four years, the index has gone sideways and down for ...

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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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