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Market Comment - May

May 2004

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.

At this stage in an economic recovery (beyond the first leg, and with interest rates edging up) we might have  expected to see a shift from small and mid-cap companies through to the larger companies with more secure earnings, less exposed to rises in domestic interest rates.  Although a number of prominent fund managers have shifted to defensive larger capitalisation sectors, this is not a widespread trend. In fact, despite our highlighting signs of technicalweakness in the stockmarket's advance over recent months, there is noobvious sign of investor confidence waning, with smaller and mediumsized companies continuing to outperform, and this confidence isabsolutely vital to continued progress. Even so, our ...

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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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