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Market Comment - November '14

November 2014

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.

We can argue about whether stock markets are driven by corporate profits, money supply or confidence. At different times each can be observed to be a key driver. Perhaps in recent years we can at least agree that it is rising money supply (notably QE) that has driven markets upwards, particularly US equities, rather than corporate profits.Yes there has been confidence too but of a very particular kind. The prevailing confidence has been in the omnipotence of central bankers. QE (and money printing at extraordinary levels) might only have triggered economic recoveries (in the US and UK), which are the worst in the record of economic history. But central bankers still appear to be willing to support markets (equities and bonds) to en ...

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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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