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Growth Portfolio 2 - October 07

October 2007

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 Growth Portfolio finished the month ahead by 2.0%, slightlybehind the benchmark indices which also rose. But markets have becomevolatile and for many investors, especially those of us that are longonly investors, it has been a few weeks where we all wanted to go andhide under a stone. The global credit crunch claimed its first high profile UK victim inthe form of Northern Rock, which was forced to seek a loan from theBank of England after wholesale money markets tightened up. The days ofits mortgages based on 5x income and 125% loans to value are cominghome to roost. A consequence of this is that investors have become more risk averseand many companies are being derated. In many cases, the sell off insmall caps has begu ...

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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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