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Market Comment - July '21

July 2021

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 an index level, the last two months have been broadly flat for UK small companies, as with other UK indices. But there are some interesting and subtle cross-currents. The Value-style sectors have drifted lower and Growth stocks have moved up. This, along with 10 year bond yields falling, suggests that the economic recovery will be short-lived and that inflation will not take hold. Yet none of that is reflected in the real world. Companies are reporting vibrant conditions. It is commonplace that sales are materially above 2019 levels and that there is a shortage of raw materials and components, plus difficulty getting staff. Interestingly, engagement with senior management of such companies is suggesting that such trends are ...

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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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