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Market Comment - September 2024

September 2024

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.

Another month and another new event given silly prominence by fickle investors and an excitable media. This time it was the Japan-centred crash. What occurred was not what most of you saw reported. It was nothing to do with the yen carry trade i.e. borrowing cheaply in yen and buying investments in another currency.  Nor was it about US recession fears - the Japanese impact would be relatively muted. It was a “flash crash,” essentially a fast and deep fall over 1 or two days, followed by a rapid rebound.   The Nikkei-225 has attracted buyers in 2024 on the assumption that the weak yen was forever, and would buoy the share prices of the big exporters that dominate the Nikkei.  Confidence (complacency?) was so great that many invest ...

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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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