starlinggroup
04-02-2009, 08:46 AM
Hi Folks
To try and limit the effect of the recession and to give confidence the investors and general people to start investing again, the world central banks have been radically cutting interest rates and pumping capital into the banking system. In normal situation this would be fantastic for borrowers, as it would mean the mortgages in particular and loans would be very cheap. But unfortunately we are not into normal financial situation. The decrease in interest rates and the turn down of other investments classes have left a number of clients with questions such as, ‘what substitute investments are available to consider investing into?’ A number of factors need to be considered before making any investments which potentially can lead you to heightened risk exposure including the length of time that you wish to invest over and what your income and growth needs and expectations are.
The ongoing crisis has almost been unique in the sense that nearly every major economic sector has been affected. Now the question is what all investments options you are left with? Once you got the answer after meticulous thinking you need to move with your financial checklist before making any decision. For instance, let’s assume you’ve done your research and decided that the natural resource sector in Canada is a compelling investment opportunity. Some less obvious questions might include:
1.What are the available capital raising strategies in the region you want to invest in?
2.What are the perspectives from sovereign funds, fund managers and high net worth individuals in the region?
3.Evaluation of infrastructure requirements in the region and how they will grow?
4.What are the investment trends by major commercial and speculative investors?
5.Up to date insight into the trading markets?
6.What are the risk management strategies for investors in the region to secure your investment?
7.How impacted by today’s economic cycle is it?
As I said that you would critically need to consider the feasibility and thoroughly examine the investment before committing to it.
David E Simpson
Starling Group (http://www.starlinggroup.com)
To try and limit the effect of the recession and to give confidence the investors and general people to start investing again, the world central banks have been radically cutting interest rates and pumping capital into the banking system. In normal situation this would be fantastic for borrowers, as it would mean the mortgages in particular and loans would be very cheap. But unfortunately we are not into normal financial situation. The decrease in interest rates and the turn down of other investments classes have left a number of clients with questions such as, ‘what substitute investments are available to consider investing into?’ A number of factors need to be considered before making any investments which potentially can lead you to heightened risk exposure including the length of time that you wish to invest over and what your income and growth needs and expectations are.
The ongoing crisis has almost been unique in the sense that nearly every major economic sector has been affected. Now the question is what all investments options you are left with? Once you got the answer after meticulous thinking you need to move with your financial checklist before making any decision. For instance, let’s assume you’ve done your research and decided that the natural resource sector in Canada is a compelling investment opportunity. Some less obvious questions might include:
1.What are the available capital raising strategies in the region you want to invest in?
2.What are the perspectives from sovereign funds, fund managers and high net worth individuals in the region?
3.Evaluation of infrastructure requirements in the region and how they will grow?
4.What are the investment trends by major commercial and speculative investors?
5.Up to date insight into the trading markets?
6.What are the risk management strategies for investors in the region to secure your investment?
7.How impacted by today’s economic cycle is it?
As I said that you would critically need to consider the feasibility and thoroughly examine the investment before committing to it.
David E Simpson
Starling Group (http://www.starlinggroup.com)