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Dear Investor
I am now back in Liverpool having been around the country at various events, including my annual university football club reunion, lunches in London with various professional advisors and a catch-up with a couple of military friends. Notable successes last week were the cracking results for Liverpool against Real Madrid and Manchester United and I am now looking forward to the Champions League games against Chelsea.
Yesterday, Henry, Russell and I had a meeting with a company about some very exciting changes we are planning for Jet-to-Let Magazine. Further details will follow shortly.
In Cyprus, construction is well underway on The Grove Spa Resort in Mazotos and pictures and commentary can be found at the Construction Blog if you are interested.
Global Economic Events
Recent data and the various policies of governments and central banks point to the US coming out of recession first, followed by the UK and then the Eurozone. Over what timescale is open to debate. I know this is against the current thinking and wisdom, but if you look at the data, Germany is having a harder time than us! Add in Spain, Italy and Ireland and the lack of urgency thus far at the European Central Bank and I may be right.
Most major central banks around the world are adopting some form of quantitative easing similar to that in Japan between 2001 and 2006. Bernanke at the Federal Reserve is using policy initiatives, such as the purchase of $300bn of treasury bills, to reduce the cost of borrowing and prevent deflation. In the UK, Brown is doing something similar by purchasing gilts, raising their price and hence reducing the yield. All these counter-deflationary measures are aimed at reducing the cost of borrowing.
In view of this, I personally cannot see the Euro maintaining its present strength in the months to come. So what?
GBP/EURO
We cover exchange rates and what determines them on the Understanding Economics 3 day course. Of all the indices, commodities and stocks to trade, FOREX is probably the easiest to understand as the fundamental economic factors which drive rates are clear. I follow GBP/EURO as I have a good handle on the economic drivers in the two “zones” for want of a more politically correct term.
It is beyond the scope of this newsletter to explain the features of the chart such as moving averages and Bollinger bands, but what is clear is that the Euro may test the previous high (or low from Sterling’s perspective) achieved at the start of the year. It’s worth watching for those who do trade currencies as a move to back to the previous short-term lows (highs for Sterling) of 1.15 is a reasonable assumption, giving a potential trading profit.
NOTE: Trading FOREX is highly speculative and you could lose a lot of money. I am NOT recommending that you do it. My piece above is for information purposes only and does not constitute financial advice.
UK Distressed Assets
The Distressed Assets team is very busy with over 30 viewings around the country this week from an initial short list of over 1000 (one thousand!) properties at the beginning of the research phase last week. The team is working very hard and we have been inundated with investors wishing to join the group.
Free Investment Seminar in London
Distressed Assets is holding a free seminar in central London on Tuesday 21st April 2009 between 6.30 and 9.00pm. The seminar will look at how investors are making money today in the present market through buying distressed assets from banks and other sources and why we believe there has not been a better time to invest in specifically targeted UK property for many years. We will also explain the Distressed Assets process, how we differ in approach from other companies and how you can benefit from our bespoke service.
If you wish to attend the seminar please fill in the form on the website at: www.distressed-assets.co.uk
Places will be allocated on a first come first served basis and seating is limited.
Understanding Economics in London
After the success of the course in Liverpool, we have decided to run a 3 day event in London on the 29th to the 31st of May 2009. If you are serious about seizing the opportunities that the present recession offers and wish to understand the impact of government economic decisions on your business, investment and personal life, then this course is a must:
A detailed syllabus is available at: www.understanding-economics.com
Further details can be obtained by filling in the form online. We presently have a special offer price for the next 7 days.
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