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Market Comment - May 2022

May 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.

Smaller companies generally are more exposed to rising interest rates than bigger businesses, as they have a lot less flexibility when it comes to raising money. So with the US market on higher valuations and carrying more debt than most of the rest of the world, why are US small caps holding up so relatively well? After all, the US Federal Reserve is talking much more aggressively about hiking rates. Perhaps what it confirms is that the US stock market downturn remains at an early stage, as there is still a substantial layer of confidence. There has certainly been no panic since the early January high in the S&P 500, which is what we expect to see at the end of a bear market worthy of the name. Turning to UK smaller co ...

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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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