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Market Comment - March 2022

March 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.

Since the peak for smaller companies on 1st September, two contradictory things have happened. A wide swathe of smaller companies have done rather well in terms of profitability, with persistent profit upgrades, and increasingly confident management. Yet the performance gap between UK smaller companies and the FTSE-100 index has widened further over the last month, -12% versus +4%. Why is this happening when some small caps’ valuations are already in real bargain basement territory? Last month we suggested this might just be profit-taking following very chunky profits from the 2020 low – up 139% from 19th March 2020 to the September 2021 peak. There is another less encouraging possibility. Bull markets do not end with all a ...

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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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