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Market Comment - February '24

February 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.

In the last couple of editions we have highlighted the FTSE 250 as the best indicator of sentiment towards the UK stock market, as it ignores the mega stocks in the FTSE 100, which are more driven by global trends. This mid cap index fell to a low of approximately 18800 on 17 January and has since built a small uptrend. A break up through 19400 would be very encouraging, at least in the short term. The pattern is much the same in the FTSE SmallCap ex Inv Cos.  Interest rates in 2024/5 are important to small companies because many are more reliant on bank debt than larger companies, and also because those who sensibly locked into lower rates will have a nasty shock when the rates are re-set. This is a bit of a battleg ...

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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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