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Market Comment - May '08

May 2008

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.

It might not be like the 1970s, as we highlighted last time but you undoubtedly still need to be on your toes. At this stage in the cycle it is relatively easy to identify those companies that you would wish to avoid e.g. those with high levels of debt that might struggle to renew terms with banks at acceptable levels or at all, or companies exposed to customers that have this predicament. Key for the well-being of creditworthy smaller companies will be the continuing availability of finance.Though covered every day by the media, few have attempted to define “credit crunchâ€. Ben Bernanke, now Chairman of the Federal Reserve, defined a credit crunch back in 1991 as an abnormal reduction in the supply of credit. For example, wher ...

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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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