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Market Comment - January 2008

January 2008

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.

At the beginning of 2007 we thought "all asset classes areexpensive...except for equities." A number of those other asset classeshave taken a hit, but despite all the fuss, the UK stockmarket as awhole is up (albeit slightly) and still looks decent value.  Where we were too relaxed was in assuming that small caps couldoutperform their larger brethren for the fifth year in a row, with thesmall cap index down 12%. The somewhat better news was that we werestill able to add value. The 2007 NAPS were up 15% over the year, andwere up 76% at best, with three doubling in value, before the creditcrunch hit indiscriminately.What about 2008? There is undoubtedly considerable uncertainty butstockmarkets, particularly small caps, d ...

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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.

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