Approximately 30 million U.S. dollars of global wealth evaporated in 2008. GCC investors were not excluded from the fray. The predominant feeling of the past decade is that the oil resources of the region maintained a stolid GCC economies expand. Ultimately what happened, pulling the economy led to a sharp fall in demand. The subsequent fall in commodity prices was exacerbated by speculators (hedge funds) are crying out doors. Oil and other producers of industrial raw materials will take time to adjust to reality. This means that expectations of income adjustment, the number of people rationalize and justify exploration projects based on projected prices unsustainable. />
Similarly, investors are the addresses of their personal right boats. This de-leverage and take refuge in defensive sectors like health care, infrastructure and food. Undoubtedly, a critical factor for the market to reverse the trend of business and investor confidence in the global economy. With millions join the ranks of the unemployed, the size of the bailouts and increased the proliferation of a global recession – the world needs is a pandemic to take what little momentum was building to a total cessation Assuming that fear is controlled the ramifications of swine flu outbreak are manageable, there are three main themes investors might be covered as they build their investment strategy:
a) De-leverage: with rates credit card, more than 20%, reducing debt is the best guarantee of efficiency at
2) Choose the defense sectors: health, basic consumer goods (food, hygiene, entertainment) and infrastructure (as the public spending plans) provide solid if not sexy, and cash flows back to investors
3) Do not try to time the Recovery – the average cost in dollars way back in the market. There may be some volatility, but 3-4 years from now, will have a cost base which will be the envy of your bowling team.
good strategies, discipline and patience can safeguard assets and allow you to accumulate wealth. When everyone is afraid to invest is when you want to be building the foundations of the market.