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Market Comment - May

May 2007

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.

Since 1896, when Charles Dow first published the Dow Jones Industrial Average, that index has never closed up 19 out of 21 days. That is until now. This has happened during a period when bond investors backing the US sub-prime mortgage market stand to lose $75 billion and first quarter US growth has come through well below expectations. These sorts of winning streaks tend to be followed by noticeable corrections and reasons to be cautious of the US continue to build. Should the rest of the world be worried? Residential property woes in the US are already being mirrored in Spain, where homeowners are over-indebted, interest rates are going up, there are too many houses and falls of up to 30% are being predicted. Yet these ...

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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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