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Market Comment - June

June 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.

Whatever the multifarious reasons for the French and Dutch voting"no", the votes do highlight growing anxiety, fear, and anger. The euro and the EU institutions were always going to be severelytested once a marked Continent-wide economic slowdown wasunderway.  The social mood that is now evident is the precursor tojust such a slowdown.  The likelihood of a dynamic response by theEU institutions to head off this slowdown is remote, though at somepoint there will be an inflexion point (probably Continental-wideindustrial action and protest) that forces a radical re-think of whatthe EU is and what it can reasonably be expected to achieve. Forthose in the US and UK the immediate relevance is the role of socialmood to m ...

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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.

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