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Market Comment - September '21

September 2021

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.

Smaller companies can be compared to the canary in the coalmine - they give an early warning of something happening. They are a decent barometer of investors’ confidence, where confidence drives markets. Starting with the US, their smaller companies are not joining the main indices at new highs. In fact, nearly 40% of the S&P 600 Small Cap index are down more than 20% from their highs. Confidence of US investors is waning.In contrast, in the UK not only has the FTSE-100 broken up to new 2021 highs, but so has the smaller companies index, and with a little more gusto. More generally, the Value-style funds have also picked up recently after a few months of drifting, assisted by both real and rumoured takeovers. This breadth ...

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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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