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Market Comment - June '09

June 2009

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.

Last time we highlighted the risk of the stock market rally failing but it has merely drifted over the last month rather than anything more dramatic.  The small cap index is still up 40% since the beginning of March. Yet the gloom-mongers have been out in force.Over the last month the heated debate amongst big name economists and columnists (from Paul Krugman to Martin Wolf) has centred on the recent rise in gilt and Treasury yields (and fall in values) and whether this is a normalisation of yields or the beginning of a new ugly trend that will end in double-digit yields and inflation, the credit status of the US and UK being downgraded, a collapse in their currencies and a new downward leg to the bear market that has (arguab ...

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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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