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Market Comment - September 2013

September 2013

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.

What is wrong with us? We fail to see a crisis in advance, but when we look back it falls into the “bleeding obvious†category. This is one of many inherent limitations with which the vast majority of investors labour. It is called “optimism biasâ€.  As economist Stephen King points out this problem extends to institutions such as the Federal Reserve. It has pumped extraordinary amounts of money into the global economy (not just the US), always optimistic that it will trigger escape velocity for the US economy, always confident that this process can be easily reversed once all is well. The truth is that despite QE and historic lows in interest rates, this is the worst US economic recovery ever (similarly in the UK). And ...

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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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