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Market Comment - March '10

March 2010

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 macro risks rising (particularly sovereign risk, which stretches far beyond Greece and the Chinese beginning to take the steam out of their economy) the UK stock market has outperformed many other European and global stock markets, including the likes of China and India, over the last month. So what is going on?  First, volume has not been high, so even a relatively small amount of institutional cash has the ability to push the UK market somewhat higher. Second, while sterling falling has mostly generated negative headlines, the institutional stock buyers understand that this is positive for many large caps - 70% of footsie earnings are generated in foreign currencies.Back in December we highlighted that if int ...

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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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