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Market Comment - August '10

August 2010

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 FTSE 100 index remains up 50% from its low in March 200, and the smaller companies index by 70%, an outstanding outcome over such a short period.  This bounce reflected low valuations in the Spring of last year and anticipated the storming profits recovery evidenced so far in 2010.Although the valuation of the market as a whole now sits in a middle ground, there is value at the extremes, both amongst smaller companies (more of which we unveil in this issue) and amongst the defensive mega caps (pharmaceuticals, utilities, tobacco) and such good value certainly gives comfort and will be a significant buffer when the market is more volatile. The same cannot be said for the rest of the market, where earnings momentum has probably pe ...

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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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