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Market Comment - November '08

November 2008

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.

After a difficult September it was a punishing October and two episodes appeared to bring the credit crisis to an ugly head and risked a banking collapse such as from the end of 1930, triggering the Great Depression. First, on 15th September the US authorities allowed Lehman Brothers to go bankrupt. Banking relies on trust and confidence. That was now broken and the global banking system began to unravel.  On 19th September the US Treasury Secretary, Hank Paulson, proposed the TARP, to buy the banks toxic debts.  That was the good news and markets boomed. But at first attempt it was rejected by legislators. As the proposal was debated in the following days the spectre of late 1930 came more and more into focus and fear s ...

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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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