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Market Comment - November '23

November 2023

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.

This time last year we expressed sympathy for one UK fund manager who told us that “many stocks in the UK are on sale at valuations we have NEVER seen before.” Since then they have become even cheaper. This week another outstanding UK fund manager added more colour to this conundrum: “More than 45% of the UK stock market trades on a forward PE of less than 10x. Just 5% of the US market falls into that valuation bucket.” The comparison could not be starker. There is a lot of bad news priced into the UK market. For such fund managers, the good news is that they can build decent portfolios out of undervalued businesses. The problem is that they hold 50-100 such businesses. A handful might do very well but with markets going nowhere, ...

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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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