by The Investor
on January 26, 2010
Most Brits have at least one relation in Australia, South Africa or Canada who loves to spout on about how much better life is in the colonies.
And as Auntie Brenda bungs another shrimp onto the barbie while we struggle through rain, cold and misery – and that’s just June – it’s easy to believe them.
Well, it’s easy to believe the Aussies and the South Africans. I’m not sure what the advantage of Canada is… Trees?
Anyway, perhaps you’ve thought of backing the good life with your investing cash, even if you don’t fancy relocating?
Australia has better demographics than the UK, after all, and like Canada and South Africa it also has a lot of those resources the man on the Beijing Omnibus can’t get enough of.
The good news is investing in these countries from the comfort of our over-priced rabbit hutches in the UK just got much easier.
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by The Investor
on January 23, 2010
Most Monevator readers will be aware by now of US president Obama’s plans to clamp down on banking, which he revealed on Thursday.
I’m pleased, even though I’ve lost a bit of money (temporarily, I reckon) on my individual bank holdings (HSBC and Standard Chartered).
After blaming bankers from day one of the credit crisis, I wasn’t surprised to see them quickly return to their old game – making out-sized profits from taking little personal risk with other people’s money, and paying their traders a huge bonus to do so. Something had to be done.
Today’s blog of the week succinctly explains how the falling price of bank shares, particularly in the US, demonstrates investors are well aware that some banks proprietary trading desks are making more profit than they should.
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by The Investor
on January 22, 2010
I have wondered before whether great investors live longer.
My question is based on the unscientific observation that Warren Buffett, John Templeton and many other famous money managers live well into their free bus pass years (even if they could actually afford to buy the whole bus fleet by then!)
Now I’ve found a video of an interview with another lucid and super-senior money man, Phil Carret.
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by The Investor
on January 20, 2010
Everyone knows risky and excessive lending led to the credit crisis, with the collapse in US house prices sparking a global banking blow-up.
But what caused the risky and excessive lending?
Obviously the banks needed money to lend hand over fist without a care in the world. Where did they get it, and how were they able to sell on their toxic loans so easily?
Partly, they increased leverage – the amount they lent for every £1 in their reserves. But they were also aided by low interest rates, particularly in the US, which not only cheapened funding but also dramatically reduced the yield on risk-free government bonds, encouraging bankers and their clients to hunt for higher returns elsewhere.
The ultimate question then is what kept central bank interest rates so low? And on this point, Bank of England governor Mervyn King blames the Indians and the Chinese for not spending their money as fast as debt-happy Westerners.
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