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Market Comment

October 2005

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.

We have pointed out in prior issues that in the medium-term, Greenspan needs to get US interest rates as high as he can, so that during the next downturn, he has enough scope to cut rates and have a positive impact on the economy. Otherwise it would become like Japan in the 1990s, where however much they cut rates it couldn't help an economy in a deflationary downturn. Greenspan is getting his way in the short-term, getting rates up but, ironically, it is causing him a little discomfort, as persistent rate increases are not slowing down the economy. Despite Greenspan’s discomfort and ignoring what might cause the US economy to eventually slow (a surprise 0.5% rate increase?), there should be no doubt that the economy will ev ...

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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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