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Market Comment - October '08

October 2008

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.

A breathtaking month. The week beginning 15th September opened with "Fight for survival on Wall Street"(FT), as Lehman Bros was on the verge of bankruptcy and the Telegraph screamed "Meltdown Monday." By Thursday "Panic grips credit markets" (FT) and a flight to quality drove down yields on US Treasury’s to levels last seen when Germany invaded France. It was a week of bank failures, rescues and capital injections on a scale unimagined even days earlier. But action was piecemeal, so when the US proposed a $700bn nationalisation of the banks’ toxic assets the mood changed rapidly, "Global markets roar in approval" (FT) and "Fill your boots" exclaimed The Sun’s front page.Monday 22nd was the beginning of a tense and fragile we ...

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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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