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Market Comment - July '17

July 2017

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 is a year since the Brexit vote and it is fascinating to observe how the markets have unfolded. Smaller companies are a barometer of confidence in the UK economy and since the surprise Brexit vote, the FTSE-Small Cap index is up 26% - this matches the FTSE-100 index, which has enjoyed a big lift from a weak pound.  More impressively, the average small cap fund is up 10% more than that (three cheers for active fund managers) and our own Growth Portfolio 3 has been flying.  The post-Brexit performance of UK Smaller Companies is reassuring. If investors had little faith in the prospects for the UK we’d expect to see smaller companies weakening. This confidence was also confirmed by high yield bonds being the best pe ...

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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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