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Market Comment - November 2012

November 2012

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 stock market bears look closely at the behaviour of smaller companies. In a nutshell if there is about to be a sharp downturn in the wider market, it should be confirmed by the small company indices. This is because the latter are typically more sensitive to the economic forces which might be triggering stock market weakness, or so the theory goes.  Neither in the US or UK are smaller companies hesitating in the same way as the broader markets have over the last couple of months. So some bears are prepared to give stock markets the benefit of the doubt for now, allowing scope for a new 2012 high (perhaps 6,400 for the FTSE) before any downturn. But perhaps we simply mustn't expect smaller companies to be the sensitive ind ...

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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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