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Market Comment - November

November 2003

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.

The US growth figures for the last quarter were better than even theoptimists expected, though the next quarter will certainly not be as headline-grabbing.  The biggest area of concern is whether anything like this can be achieved through 2004, with some follow-through impact on unemployment (already improving, but it's veryearly days). Massive impetus lay behind this growth spurt, anda significant element, the tax cuts, were a one-off.  Despitethose growth figures, the best quarter in decades, the Fed still,publicly, insists it is more concerned about disinflation/deflationrisks, rather than inflation.  Some cynics speculate that this isno more than the Fed trying to hold the economy steady ahead of aPresiden ...

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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.

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