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Market Comment - September 07

September 2007

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.

As problems in credit markets became stark over the last month, hedge funds, highlighted last month as an unknown and worrying quantity, began a fire sale of equities to cover losses elsewhere. Yes there was panic but it was from well-defined sources. And the fall-out in equity markets was nothing like as bad as the saturation media coverage would have you believe. The S&P 500, the major US stockmarket and the most significant global barometer, was barely down 10% since its peak in July, which makes it a minor correction. Is the worst over? Probably not. Should you be worried? Probably not. The damage at various banks and hedge funds is not yet clear and this uncertainty could prompt more volatility. In the sho ...

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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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