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Growth Portfolio 2 - August

August 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.

The portfolio declined by 4.1% over the month although it did feel much worse, with sentiment generally poor. The two benchmarks declined by 2-3%  and our view is that there has been little follow through buying and  so we should start to expect knockdowns in thinly traded shares as market makers look to attract business. If that drags on, in itself, it will create capitulation and panic selling involving high volumes. We have been here before and now is not a time to be leaving the market. On the contrary capitulation selling will create the opportunities for buying what may be multiple baggers in the months to come. But the winners in the next bull run may not be those that led the current one. So even in markets like ...

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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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