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Market Comment - August '20

August 2020

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.

Think of a house after an earthquake. The windows may be shattered, there may be cracks in the walls, it’s all very visible. This is like the stock market in March. In contrast, the foundations of the house are not immediately visible, nor is the damage - this is the corporate bond market. As foundations go, right now it’s fundamentally shaky, you just need to dig a bit deeper to see it.Even before the pandemic, the level of corporate debts was causing alarm, with warnings from various authorities including the IMF. In particular, they believe that 40% of the total business debts in eight advanced economies, including the UK, could be vulnerable if there were a “material slow down” in the economy. Well, we h ...

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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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