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Market Comment - July

July 2005

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.

Since footsie probed down towards 3250 in March 2003, there has beena clear and profitable uptrend, with gains in excess of 50% for thosewith the presence of mind to invest cash at those lows and much more ifyou cherry-picked small caps at that time. Such uptrends don’t go onforever, and it is useful to establish some signposts for the journeyahead.  The big question is whether the current uptrend is a newlong term bull market after falls in the region of 50% from 2000-2003?Or is this uptrend no more than a bear market rally in a seculardownturn which has not yet finished?Amidst the downturn from the year 2000, Footsie developed a strongband of support in the 5100-5400 range from October 2001 to May 2002, 7months of very du ...

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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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