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Market Comment - December '24

December 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.

Since the global stock market lows of September 2022, UK small caps have enjoyed a good rally, up 30%, with some very handsome gains beyond this average. Last month we were able to set out some high level positives e.g. US and China accelerating together. Now we are beyond the UK Budget, let’s look for some clues as to the outlook for UK smallers. The picture for the FTSE-Small Cap (ex Inv. Cos) in 2024 shows a strong rally into May, then a top forming over the summer, and now a return to the level of May. Depending on your state of mind, you could contrive a cogent argument for this index being about to soar or plummet. Better simply to look for a signal either way. The optimists require a quick move up through 6000 and the pessi ...

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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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