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Market Comment - April '18

April 2018

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.

In the February issue we highlighted that, despite valuations suggesting poor stock market returns on a 7-10 year timescale, there could be some excitement and decent profits on an 18-24 month view. This same basic technical analysis also indicates the likelihood of a fall of around 25% midst the latter period, which for sake of argument we assume will be this Autumn.Last time we also said the wobble earlier in February looks incomplete and targeted a total fall of about 15%. Since then the markets in the US and UK have indeed gone a touch lower and as I write both are down 11.5%. If this road map holds, there is a touch more to go on the downside, but not much.By the time your hair is grey you know that this sort of analysis ...

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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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