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Market Comment - July '25

July 2025

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.

Good news. The FTSE Small Cap (ex IT) index has broken above the resistance level of around 6,000 and is now at 6,200. As said last month, a break up through that resistance gives control back to the optimists. But, you might say, this makes no sense if you look at the gloomy headlines about the UK economy day after day, let alone the extreme risks further afield. The good news is that all this domestic despondency increases the likelihood of more rate cuts, or quicker rate cuts, possibly both. In the Global Investment Returns Yearbook 2024, Professor Elroy Dimson and his colleagues showed the majority of returns from stock markets are earned when interest rates are falling. For example, US rates were falling 55% of the tim ...

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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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