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Market Comment - October '10

October 2010

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.

  • Epic Code:
  • Market C
It's been a month for head scratching. September is historically the weakest month of the year, yet we have apparently just enjoyed the best September since the 1930s.Government bond yields went even lower, hinting at entrenched caution. But equities have been going up, suggesting greater confidence about a continuing recovery in the economy at large as well as company profits. This doesn't obviously make sense.High yield bonds (what used to be called junk bonds) have returned to pre-Lehman levels and the index that tracks AIM-listed shares took off vertically over the last month. It's as if the last couple of years didn't happen - some would argue we are now in a bigger hole (the “age of austerityâ€) than in the lead up ...

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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.

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