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Market Comment - June

June 2004

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.

Looking at UK and US stockmarkets, whatever concerns we may have about valuations, and a raft of technical indicators flashing red, stockmarkets can continue in this precarious state for some time. Despite the expression of widespread concern in the last month over falling bond and commodity prices, and the threat of rising inflation and interest rates, the UK and US markets have not taken the opportunity to break down.  In the footsie such a breakdown would be evidenced by a breach of the 200 day moving average and a swift run down through 4,300.   So we mustn't overlook thepossibility of a final run to the area around 5,000 to complete thisbear market rally (if this is a bear market rally).  Ashighlighted ...

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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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