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Market Comment - January '09

January 2009

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 can be argued that we are now into the ninth year of a bear market.  Are the sharp market falls of the Autumn 2008 more likely to be near the middle or the end of that downswing (as self evidently it is not the beginning)? Fear is a powerful and fast-moving emotion, more powerful than the greed that unfolds relatively slowly in a long bull market and it tends to occur at the end of trends. This fear over-powered the UK stock market in the Autumn despite years of the market de-rating in price earnings (PE) ratio terms and we know of no other precedent for such sharp falls hitting a market so obviously not over-priced. It feels like we should be near the end of the downturn for the stock market now, in which case the worst case bec ...

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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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