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Market Comment - August '26

August 2026

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.

Since the low at the end of March, the FTSE Small Cap ex IT has continued a steady uptrend, up 11%, nearly twice the return of the FTSE-100. This has occurred without notable enthusiasm or rate cuts or notable reforms. Sometimes a market is so cheap, and so pregnant with opportunity, that the status quo is sufficient for a small band of net buyers to keep the upper hand.  Part of that status quo is the new Labour administration not doing anything stupid. Though it is very early days, on Wednesday 15th July UK housebuilders, deep cyclicals, bounced sharply as rumours emerged that Shabana Mahmood will be the new Chancellor. Though the next Budget might not be until October or even November, notable personal tax rises are already bui ...

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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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