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Market Comment - June 22

June 2022

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.

Stagflation and stagnation combined with rising inflation is upon us. Such occasions are rare, so today’s investors will focus on the most recent such period in financial history - the 1970s. That is fair only to a point, as the differences are significant. In the ‘70s inflation was above 20%, wiping out a significant chunk of the value of savings, and large parts of British industry were State-owned and loss-making, and were midst the shedding of millions of workers. None of that applies now, though one unique and ugly worry today is the size of the mountain of debt, both government and corporate, the latter of particularly poor quality. Yet there will be bargains amongst those with pricing power and limited debt, and wher ...

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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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