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Market Comment - October 2011

October 2011

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.

Far be it from us to argue with the likes of George Soros but a recent piece in the FT was a touch bizarre.“Markets are driving the world towards another Great Depression,†he proclaimed. Let's explore that.Imagine a world where, for 25 years, the bulk of the population is at its peak earnings potential; saving, spending, paying tax. Interest rates also steadily fall, so as the years progress it is made easier to go into debt and buy now, rather than save and buy later.The Government enjoys a tax bonanza and it's increasingly cheap for them to borrow as well, so they do. And in this increasingly confident environment promises are made on future pensions and social security entitlement.All of this (not just increas ...

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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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