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Market Comment - September 2011

September 2011

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.

Last time we again highlighted our target for 4800 on the FTSE-100 index, which we hit on 10th August and it acted like a spring board, catapulting the index briefly above 5400. The other noted problem was Spanish and Italian bond yields - the ECB took highly effective action to drive yields down to 5% (away from what would have been the catastrophic level of 7%).Now what? Morgan Stanley (who you ignore at your peril) produced research admitting the pillars that had underpinned their positive analysis earlier in 2011 had all been undermined. They weren't the only investments house to issue a similar mea culpa.MS now believe the US stock market (and therefore developed western markets as a whole) are in a secular (multi year ...

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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.

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