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Market Comment - March

March 2002

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.

Despite our optimistic analysis last month on the outlook for the footsie, we are still waiting for the index to make a break up through 5,400; the index having been hidebound in a 5,000-5,300 trading range since last November. But the general feel has definitely improved. Eventhough we haven't noticed many positive earnings revisions, one indication of a strengthening market has been the increasing number of new stocks clipping highs. But we are not out of thewoods.  Although the recent consumer boom has done wonders forretailers, this has created worries about the level of credit carddebt taken on by consumers.  Credit card borrowings are up from£342 billion in 1992 to nearly £723 billion at the end of 2001.&nbs ...

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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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