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Market Comment - October 2013

October 2013

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.

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Confidence is vital to markets and economies. That's a simple truth - and judging the level of confidence is vital for investors. But that judgment is difficult and most investors don’t do “difficult.†Clients prefer an (ultimately) incorrect but simple solution to a complex but correct one.Take the US (partial) shutdown. These have been quite regular through history (18 since 1976). None have had a significant impact on equities. On this occasion the monthly cost pales in comparison to the size of the economy and monthly QE. Yet analysts and the media focus on this alone as a reason to sell/buy the US stock market and investors play along. This is one example of the many investor behavioural problems. They anchor their analy ...

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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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