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Market Comment - August '22

August 2022

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.

For a number of years, we have wondered how central banks would dig themselves out of a hole largely, though not solely, of their making. There were going to be no easy choices to right the ship, only painful ones - now the pain is coming fast, and not going away soon.Interest rates are about a decade late in being adjusted upwards, and considerable fragility has been created in that time – valuation bubbles, investment manias, all the stuff that many of us have been talking about for years. Our analogy for that fragility was the avalanche-prone snowy slope. It just needed the final snowflake to bring it all tumbling down, though the timing and nature of that snowflake were unknown.  In the end it was a mix of pandemic and Putin - ...

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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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