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Market Comment April

April 2004

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.

Has the bear market returned?  All European stockmarkets are now down for the year (though smaller companies are still tending to outperform, certainly in the UK). There have been various signs of weakness as the stockmarket recovered from March 2003 (we have regularly highlighted them), and these signals of an impending top became louder and clearer in recent months.  Since the recent high(footsie 4,565.3 on 5 March) there have been subtle changes in a numberof technical indicators compared to other pullbacks in this year-old recovery.  These tend to suggest that recent weakness is more significant than other bouts of weakness in the last 12 months. Thebanks are probably key to what happens next with the FTSE 100 ...

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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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