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Market Comment - May '11

May 2011

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.

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Space and time usually prevent us from drawing your attention to some of the outstanding research that comes across our desks. But as the markets continue their “cartoon moment†(see last time), it is useful to reflect on one of the big themes of our time, the commodity cycle.Jeremy Grantham has been a fan of commodities, driven by growing demand from China in particular, coupled with shortages in some resources and growing investor demand driven by low interest rates and greater accessibility (through ETFs).Now Jeremy counsels caution. In a sweeping commentary (www.GMO.com) he warns that commodity prices are on the verge of a crash. But it's not all bad news. This will in turn present a very rare opportunity to buy befo ...

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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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