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Market Comment - October '15

October 2015

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 big headlines have now become stock-specific. Glencore is crumbling, and VW is drowning under dirty tricks. As with China last month, don't let these distract you from more fundamental, longer term fragility. Last month we highlighted far too much debt and ageing populations weighing on the low growth developed economies. Markets as well as economies are fragile. The liquidity problem in bond markets has been reasonably well aired, but not that in stock markets.Two-way trading volume is key to liquidity, and this is what is in doubt. Volume on the New York stock exchange has plunged 70% since 2004 - so there is no great enthusiasm for equities. Most worrying is that only 15% of this is real humans making conscious decisions ...

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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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