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Market Comment

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.

As we move towards the all-too-often turbulent Autumn, the targetfor the stockmarkets neurosis is the growing risk of recession in theUS. This is fed by a diet of regular reports on the US housing market,the Achilles heel of the US economy.The US consumer has not only supported their own economy but theglobal economy and much of the spending has been facilitated by equityrelease from booming house values.  After 17 consecutive interestrate increases, there are signs of severe strain in the US housingmarket, and consumer confidence surveys are headed down. Should you bespooked?The ending of the UK and Australian housing bubbles have not causedrecessions. The US housing market has very distinct regions and whilesome are ...

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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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