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Growth Portfolio 2 - September

September 2006

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.

Plenty of signs that the stock market is settling down again with small caps beginning to wake from the apathy that has affected them since June. We're not sure if it’ll be the case this year but August is historically the third-best month after April and January in terms of stockmarket performances. Overall the portfolio is up 3% against virtually-unchanged benchmarks.  The recent falls in small caps have left valuations, based on PE ratios, at the bottom of the range seen for the past couple of years and as companies also move into reporting season in September, investors will start looking forward to even lower multiples which will provide scope for price recoveries. We ...

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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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