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Market Comment - May '21

May 2021

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.

Following on from last month’s upbeat outlook for the UK market in general, and smaller companies in particular, in recent weeks small cap fund managers report similar findings to our own. Profit “warnings” on the upside and the economy appearing to operate much more robustly than is represented by the official GDP numbers.If the optimistic analysis of the FTSE-100 index is to hold good (i.e. that a prolonged upswing began in October 2020), the index needs to move towards 7800-8000 quite rapidly – it is currently toying with 7000.Nonetheless, the FTSE-Small Cap (ex IT) index is showing a clean pair of heels to the footsie, and in the last month took out the prior all-time peak in 2018, which has gone l ...

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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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