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Market Comment - May '26

May 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.

As per the road map set out last month, there was a bounce from clear support levels in stock markets around the globe, from the S&P 500 to the FTSE Small Cap ex-IT. The latter index was up 6% from the bounce date of 30th March, and the broadly equivalent MSCI ETF gained 9%. The S&P 500 rose still further, 12.5%, and hit a new all-time high. Midst a dangerous armed standoff in the Near East, such relative calm is surprising many analysts and commentators. Yet it is not a surprise if considered through a lens constructed from a mix of analyses: cycle, technical, valuation and behavioural. The end of a 40 year cycle is clear, whether pinpointed by Ray Dalio’s rich narrative, covered last May, or the more esoteric Elli ...

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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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