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Market Comment - August '14

August 2014

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.

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Big Day For Britain€screamed your media. The event was UK GDP at last reaching pre-recession levels.  Whoopee. I'm tempted to be churlish. Obviously extraordinarily low interest rates have helped this (weak) recovery, in particular boosting the housing market (which you are enjoying if you live in London and the SE).  But the UK does not exist in a vacuum. Export-dependent Germany has seen a downward trend in exports since the Autumn, as world trade has stagnated. Germany will not be growing at all in 2015 (say SaxoBank), which will be the big European surprise. Unemployment in France has risen for 10 straight quarters. Youth unemployment in Italy is still rising, currently at 43%. And this is before Russian sanctions and recessio ...

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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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