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Market Comment - September '25

September 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.

Despite the prospect of UK interest rates falling notably in the next 18 months, smaller caps had a quiet month in August. The FTSE Smallcap ex ITs was down 2%, compared to their Chinese peers, which moved up a barely noticed 9% and US smallers, up 6%. Big uptrends tend to build on a foundation of being cheap and under-invested, yet benefiting from reforms and policy support. For example, a year ago you were told by many “experts” that China was uninvestable. When such absolute terms prevail, you should invariably look for an opportunity. UK smallers are also cheap, and investors are underweight. It is policy support that has been less obvious across the Summer. Stubborn inflation in the short term implies less rapid rate c ...

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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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