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Market Comment - June 2006

June 2006

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’s very rare that you can forecast a sharp correction but it isnot so difficult to identify the conditions that might give rise to oneand we hope we have helped you in this respect through 2006. We wereable to clearly highlight risks in commodity funds and emerging marketsand we hope some of you took the chance to bank gains.It was widely reported that the cause of sharp falls washigher-than-expected inflation figures in the US. The reality is thatthe US figures were not that bad and this was reflected in the factthat bond yields fell, as did gold but both should have gone up ifthere were real inflation concerns. As we set out in the last couple ofmonths, the seeds for the volatility were sown some time ago - Japansignalled th ...

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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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