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Market Comment - May '24

May 2024

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 US stock market peaked on 28th March, and the world has drifted lower with it. The two exceptions are China and the UK, both of which are cheap and have recovery potential. The US has neither of these attributes. Our central case is that the US is going through a Spring breather, which has a bit further to go (say 4700-4800 on the S&P 500), which will be followed by a (final?) peak, which we project to be 5,361. This creates space for all the UK indices, including small caps, to edge higher still. Last month we anticipated the FTSE-100 peak, which has just occurred. The attractions within this index, and of the UK generally, were highlighted last week by the bid approach for Anglo American (albeit rejected). That the foots ...

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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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