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Market Comment - August '24

August 2024

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.

Politics drove the volatility in June, and conflicting economic signals did the same in July. This skittishness is both a feature of bubble markets (US equities) and markets in long term transition.   At any one time the vast majority of investors are making no changes to their investments, content to sit tight. Right now, many financial markets are being driven by a small number of very polarized buyers and sellers.   This can be frustrating on occasion. We can rationalise that many UK smaller companies are cheap, but for a broadly-based re-rating to reflect this observable fact we need a sufficient number of investors, with big cheque books, to start buying, even if we think their reasoning is occasionally a bit squiffy. ...

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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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