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Market Comment - January '10

January 2010

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.

Over the holiday season the financial pages were full of “10 things to worry about in 2010â€.  Recommendations for the year ahead, or even decade ahead, tended to centre on emerging markets and gold, as there is a tendency for pundits and analysts (and investors) to be optimistic for the prospects of what has already gone up.  Is there nowhere in the world where there is what we would call deep value?The obvious outstanding opportunity is Japanese smaller companies, where the sector stands at more than a 20% discount to net asset value.  The problem with highlighting this opportunity is that such value has been evident for the last couple of years.  It is investor sentiment that is the problem and it t ...

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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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