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Market Comment - August 2004

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.

UK small companies have continued to give ground this month. So too have the large caps on both sides of the pond with the FTSE-100 fallingbelow 4,330 and the Dow Jones  below 10,000, both losing their gains  since the new year. We think the last few dayshave seen a decisive change for the worst. The key is how long thesupercharged performance of the oil price will be sustained; thismonth it went over US$44 and if it persists over US$35 or more thenthere is a clear risk of  slower world economic growth to come.The problem, of course, is that higher energy prices act like a taxand rob consumers of money that would otherwise go to buydiscretionary goods such as cars, computers and clothes. Thereare a ...

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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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