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Growth Portfolio 2 - September '07

September 2007

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.

The summer roller coaster ride continues. Up one day, down the next and over again. A truly wonderful environment if you like to day trade. The extreme amount of leverage from spread bets and credit derivatives in the system has created all kinds of problems and not just for the big companies. Quite a lot of small and medium sized companies have been suffering due to margin calls from investors who held the shares using spread bet positions. Drops in prices forced other investors to either put up margin or sell, with most investors choosing the latter option. At the same time, market makers have been widening spreads to put off buyers whilst selling has been limited to small market sizes , creating a vicious circle. That said, t ...

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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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