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Market Comment - March 2013

March 2013

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.

It is time to catch up with some new, key trends beyond the smaller company universe.Sterling is weakening noticeably. We thought this might have occurred sooner but through much of 2012, money was flowing into the UK as it fled   the euro crisis. The opportunity for UK investors is not weakness against the euro, but rather against the US dollar. The US dollar is fundamentally strong (at least for the foreseeable future) as global reserve currency, and the world's safe haven.Technical indicators also imply a long-term trend change for sterling, with parity vs. US dollar implied as the final destination. Just buying dollars and stuffing them under the mattress would do the trick if this trend went that far.I ...

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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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