Browsing through my portfolio of equity funds yesterday, looking for opportunities some modest monthly purchases, I quickly realized that we are going through a bullish spell and this might not be the right time to buy. Casting a wider net did not return any products that buck the trend: Finance, Oil, Semi-conductors, Aerospace, Defense, Gold Mines, … are all on an mid-term high. Or did one asset break expectations in a not so obvious way? Let’s take a look at Bitcoin.
The chance of a lifetime 🙂 Invest 200,000,000 baht very securely in ‘a number of go – go bars’ … live, dream and reside in Thailand with a healthy income. Let’s just ignore the fact that with 200 million baht (about 50 million euro) you and a few generations to come can do that anyway … this type of ad doesn’t exactly bode well anyone involved. Some mother do have ’em 🙂
When Deutsche Bank communicated their Belgian promotional offer of a fixed-term DB Invest Plus savings account that guarantees 5% interest (on a yearly basis) in 3 months, I was almost in. This was a promotion (valid until June 24th) I was going to take advantage of, be proud and blog about the fact that I had gotten 5% in a climate of negative interest rates. How good was I? But that climate kept echoing in the back of my mind. Why would a bank offer such a big premium over what the market is offering, when they can borrow money from the ECB at dirt-cheap rates? Who cares though, all deposits have a state-backed guarantee up to € 100,000, right? Well, yes, but the description of the risk involved contains something rather strange. It specifically mentions that in case of bankruptcy, the investor is at risk of losing his deposited funds. The amount that supersedes the government-backed € 100,000, might be converted into shares or be lost altogether. While this is part of the German system of double deposit guarantees, this disclaimer is particularly peculiar, as this promotional opportunity is capped at € 50,000, well below the government guarantee. A short-term promotion, valid for a very limited amount of time, well above other much cheaper options at their disposal, and explicitly mentioning that the investor might lose his funds even though the maximum amount is well below guaranteed deposits? I would almost think that Deutsche Bank is experiencing liquidity problems.
Where Russian investments remain a gamble due to mixed forecasts and analyses, there seems to be gaining momentum for a bright economic outlook for India. Is the time right to take a tentative position on India?