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Market Comment - September '15

September 2015

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 said would happen months ago, once the avalanche began the headlines and commentators obsessed over the latest snowflake (China) rather than analysing why the markets are so prone to avalanche.The Chinese casino stock market as measured by the Shanghai Composite has limited relevance to other world stock markets. It is dominated by Chinese retail investors with a gambling instinct.The recent devaluation of the Chinese renminbi was both predictable (can’t figure why there were so many ‘shock’ headlines) and very limited. For example, the euro and yen are off 30% from their highs; the Chinese currency came off an insignificant 3%. There is a currency war but it’s been underway for som ...

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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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