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Market Comment - December '10

December 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.

As we look back over 2010 we can but recall the fine prose of Vinnie Jones at the end of the  film “Lock Stock and Two Smoking Barrelsâ€: it's been emotional.Markets and economies of the developed countries are still in a “mending phase.†The stock markets continue to devalue as they have done since the year 2000 - for longer-term stock pickers there is already outstanding value, yet valuations could continue to get better for the next year or two as share price moves underperform the growth in earnings. And we are obviously some way off sufficiently deflating the debt bubble, which only began to deflate in 2007/8.The EU is currently at the epicentre of a multi-year debt crisis. Looking forward, China could become ...

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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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