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Market Comment - September

September 2004

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.

In the July issue we suggested that there was a clear pattern thatwould take footsie down to 4,300 but that thereafter the 5,000 levelcould act as a significant magnet, pulling the market up sharply. Footsie has since tested the 4300 level twice and then bounced sharplyback up through 4500.  September and October, seasonally a time ofsharp falls, could yet surprise us with another 500 points on theupside.There hasn’t been any obvious catalyst for this rally. In fact therehas been almost a consensus that sharp falls lie just ahead and thismove up through 4,500 has left many analysts scratching their heads.What has happened is that the world economy has starting slowingdown and, for now, not too dramatically.  ...

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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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