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Market Comment - February

February 2004

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.

"It's inevitable. We just can't be sure when".  In the last couple of weeks this has been said of two possible outcomes which don'tsit comfortably together.  Firstly that with the US economy impetus (low interest rates, tax cuts etc) being removed it is only a matter of time before the growth engine begins to splutter.  Secondly, that having had so much liquidity pumped into the economy, wemust get somewhat higher inflation, only the timing being in doubt. Thesetwo events can occur at the same time, such as in the stagflationaryperiod of the 1970s, but it is unusual.  On inflation andinterest rates, the Fed has now changed the emphasis of its message oninterest rates by dropping its promise to keep rates lo ...

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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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