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Market Comment - March

March 2007

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 Chinese stockmarket and Alan Greenspan have conspired to spookmarkets. Even the FT had ghoulish headlines. On Thursday 1st March themain US stockmarket indices slipped 0.3%. On 2nd March the FT managedto contrive the headline "Trading frenzy takes its toll on marketsacross world," accompanied by an over-sized picture of asuicidal-looking trader, head in hand.Let’s try and get this into perspective. The very small, inefficientShanghai stockmarket had performed terribly for a number of years,despite a booming Chinese economy and booming shares of Chinesecompanies quoted in Hong Kong and outside China.  Long overduestockmarket reforms were introduced earlier in 2006 and a huge volumeof Chinese domestic investors joined the ...

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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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