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Market Comment

August 2005

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.

 Reasons to be cheerful? Despite the London attacks, the FTSE-100 index has held steady, buoyed by some decent corporate results in the last few days and hints at M&A activity. Even so, footsie has underperformed other world markets since 7th July and the major concern is the growing signs of domestic economic weakness.Retail sales remain dire, the unemployment trend is edging up for the last few months (albeit from low levels), house prices are officially stagnating (though local anecdotal evidence suggests significant falls), and house repossessions are up very sharply. Fiddling by the Chancellor (his "golden rule" is losing its lustre) certainly hasn't helped the perception of investors, particularly overseas instituti ...

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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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