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Market Comment - February 2012

February 2012

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.

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  • Market C
The markets have had a decent rally since the lows of October. The FTSE-100 has advanced 14%, which has been mirrored by stockmarkets around the globe. Co-ordinated action by the world's central banks has been a key.In “the old days” (1980-2005) injections of liquidity and low interest rates would lay the foundation for the next cyclical recovery. So it always made sense to buy the market ahead of that upswing. Cyclicals and small caps would lead the way. Being highly geared to recovery, they would quickly discount an expected sharp profits improvement as the economic recovery became embedded. The problem now, midst years of deleveraging and austerity, is that cycles are much shorter. There’s also been ano ...

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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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