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Market Comment - October '20

October 2020

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.

There is nothing new in investment. “Memoirs of Extraordinary Popular Delusions and The Madness Of Crowds” was first written by Charles Mackay in 1841. My own raggedy copy is from 1869!Mackay tells us about one investment offering at the time of the South Sea Bubble. Money was requested for “a company carrying on an undertaking of great advantage, but nobody to know what it is.” Obviously that was silly but it is what you get midst a dangerous investment mania.Today in the US we have SPACs - Special Purpose Acquisition Companies. They have no corporate track record, no definitive business plan, and are in no specific business. They simply offer a promise to invest in some un-named business or businesse ...

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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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