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Market Comment - April '11

April 2011

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.

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  • Market C
With the range of problems that have unfolded over the last month or so it is remarkable that the markets have not corrected more substantially. But don't be fooled into thinking they won't. It’s what we call that “cartoon moment,†when the lead character has run out over the edge of a cliff, but continues to run in mid-air for some time - until they look down…As mentioned last month, the downside for the FTSE-100 is 4800, with the possibility of 6200 in the very short-term before investors begin to “look down.† The promised “comprehensive response†to the eurozone crisis was unveiled in recent days, but was nothing of the kind. The odds of default in peripheral nations remains high. The timing of such an event ...

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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.

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