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Market Comment - May '20

May 2020

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.

The market feels like it is in a bit of a no-man’s land right now. The massive and fully justified lockdown action by the authorities in March stopped the rot. What next?With a little too much dogmatism last month, we said “this downturn is not over.” Perhaps there is no precedent for it being over already, but that doesn’t mean that something which is beyond our experience cannot happen – humility is a more useful characteristic for an investor than dogmatism.Nonetheless, we observe that the bounce from the mid-March lows is a textbook for a bounce within an ongoing downtrend i.e. a final low is ahead of us. One important giveaway is that volume has reduced as the bounce progressed; loss of mome ...

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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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