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Market Comment - June '20

June 2021

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.

The month of May has been flat for the FTSE-100, though the small cap indices are still edging up, propelled by more profit warnings on the upside. But today our concern is a mania that has the under-estimated potential to trigger a nasty market shock. Anyone who observed the economic potential of canals in the late 18th century or railways in the mid 19th century was absolutely right. Yet fortunes were lost in investment manias derived from these innovations. Similarly, fortunes were lost by investing in Microsoft in 1999 (it fell 65% from its peak), but it did not mean it was a bad company. And with Apple and Intel, which fell in excess of 80%. In the same way, the surge in the price of bitcoin and its peers tells you nothin ...

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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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