Finding Those ‘FTSE Safe Havens’
Jul 3rd, 2008 | By Ben Traynor | Category: International InvestingOn Tuesday I wrote that homeownership could be the worst financial move a new buyer ever makes. I also argued that investing in shares, the right shares, mind you is a good way to protect and grow your wealth right now.
My article drew the following response from a reader:
“Tomorrow’s forecast is heavy rain. Would you bet your pension fund on it? You would like other people to bet their pensions on your forecasts.”
I’d like to address this. I’m going to explain why I believe there are good investments you can make in the current economic climate. In particular, I’ll tell you about one “FTSE safe haven” that has our penny shares expert very excited indeed…
But first, I’d like to make it clear that we at Fleet Street are not in the business of offering pensions advice. Pensions are not our beat.
No, we write for readers who are interested in private investing — many of whom wish to buy shares themselves for their own personal portfolio. Some have a bit of money put aside, and are looking for ideas of what to do with it.
Our business is based on selling our research. Therefore, not surprisingly, we set a lot of store by that research. Its quality determines how successful our business is.
We publish reports that present recommendations that we believe will deliver returns. It goes without saying that all our recommendations are thoroughly researched.
Of course, there are no guarantees with any sort of investing. Risk goes hand-in-hand with reward, and you should never invest more than you’re comfortable with.
But I firmly believe that there are good investments to be made right now. We have several new reports that are in the process of coming to press. The current climate may be tricky for investors… but that just means we’ve had to work a bit harder!
And, as they say where I come from, “A bit of graft never hurt anyone!” (Note to those who don’t speak Geordie — ‘graft’ refers to hard work. Elbow grease!)
Why do I believe there are still good investments? To answer that, let’s first consider the current state of our economy. What’s the latest news?
Well… it’s not good. Marks and Spencer (LON:MKS) yesterday announced a 5% drop in sales over the second quarter of the year. The announcement wiped £4 billion off the value of leading retailers.
Home builder Taylor Wimpey (LON:TW) announced 900 job losses after it failed to raise sufficient cash from investors. And this could be the start of a wave of unemployment. The OECD reckons Britain will see 100,000 jobs go over the next two years.
These economic woes make it tempting to avoid stocks completely. But that still leaves the question of what to do with your money.
Buy property? Certainly not! Not in today’s market…
Hold cash? With inflation rising, that’s a guaranteed way to become poorer in real terms. Put simply, inflation destroys the value of cash.
That’s why you need investments that offer you the chance to keep pace with inflation — and ideally outstrip it.
Our upcoming reports will give you details of just such investments. On Saturday, I’ll tell you how you can get your hands on Tom Bulford’s latest — which reveals a small resource company on the verge of something big (more details tomorrow).
The beauty of this company is that isn’t reliant on the state of the UK economy. And the truth is, there are several FTSE-listed companies that offer UK investors the same advantage — broad, global exposure.
The primary operations of these firms take place far, far away from these shores. Yet the international scope of the FTSE is something many investors overlook.
We don’t. Our research team is looking closely at a number of stocks that we believe offer a haven from the coming UK downturn. I’ll keep you posted on these in the weeks ahead…
Not all stock markets have had a bad year. This one’s up 73%…
It’s tempting to think that every stock market in the world has imploded in the last year. But, as Manraaj Singh proves, there is still good value out there.
And believe me, he really does mean “out there”!
You see, Manraaj has been investigating the so-called “frontier markets”.
“Think of them as emerging emerging markets,” he says. One of these, Lebanon, has seen its stock market shoot up 73% in the last 12 months — this in spite of all the global financial turmoil.
As you can imagine, these minnows offer spectacular profit potential. Manraaj’s favourite frontier market will, he believes, bring returns that dwarf even those seen in Lebanon.
Trouble is, most investors don’t know how to get frontier market exposure in their portfolio. And many commentators have said — mistakenly — that it’s almost impossible for private investors.
“Not true,” says Manraaj. “We’ve found a way — and I’ll tell you exactly what you need to do.”
With this one investment, you’ll gain exposure to what Manraaj reckons is the hottest frontier market on Earth!
Until tomorrow
Ben Traynor
Source: Finding Those ‘FTSE Safe Havens’
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