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Market Comment - October '19

October 2019

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 betting is 1/3 that there will be a General Election in 2019. How might markets respond in the short and longer term - particularly if there is a change of Government, and knowing that markets hate change? In the long run, say 5 years and beyond, valuations today will dictate returns. Analysts at GMO in the US crunch these numbers. In a nutshell, they calculate future returns based on what happened in the past when the same conditions prevailed as we have today (primarily valuations).GMO figure that over the next 7 years, large cap US equities will return minus 3.3% per annum. Yuk. That’s not guesswork – it’s simply the maths and is dictated by the unique over-valuation today. Although these are the numbers fo ...

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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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