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Market Comment - March '16

March 2016

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 time of peace prepare for war. For successful investors this means when markets (and you) are calm, plan for how you will respond when markets tumble. Equity markets have bounced from the sharp falls earlier in the New Year, so now is a good time for such calm reflection.Your investment plan should include the question “how far down?” For individual stocks the answer is easy – the price can go to nil. You must deal with this possibility by writing down a stop loss – a point at which you will sell as you are not prepared to accept greater losses. Why write it down? It’s a form of pre-commitment, and without it you are highly likely to kid yourself midst sharp falls that your stock is about to bounce. ...

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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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