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Market Comment - September '09

September 2009

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.

Last month we highlighted that small caps had been a bit sluggish since May compared to the FTSE-100 index. Well in the supposedly quiet month of August smaller companies fairly took off, up 17% compared to just 7% for the footsie.  It is also telling that during August there were a number of days with a raft of positive news, yet the main markets in the UK and beyond hardly moved.While footsie has a very strong international bias, clearly the small cap indices do not and the message appears to be that investors are confident about a domestic cyclical recovery (rightly or wrongly) but not so sure about the global dimensions to the recovery. For example, can there be much more to go for in miners and the like once the C ...

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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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