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Market Comment - May 09

May 2009

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 a conversation with the FT in December 2008, we said (only half jokingly) that it was possible to cogently argue that by the end of 2009 the FTSE 100 index could be at either 2000 or 6500. But as life's experience is often that the truth is somewhere in the middle, perhaps 4250 by end-2009? Now as we write, the index is toying with 4250. Since March, risk appetites have returned and stock markets around the globe are sharply higher.  If the vast sums on deposit around the world are switched in earnest into risk assets, markets will go much higher than we have already seen and the new bull market will have begun. A concern about the recent rises is that leadership has come from the likes of the banks and smaller companies ( ...

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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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