2011年9月15日星期四

Searching for security

Many investors, left reeling from their losses, woke up to the sober realization that, in the words of Al Ahli Investment Group Managing Director Nael Raad, "nothing is safe". Daniel Diemers,he believes the fire started after the lift's RUBBER SHEET blew, principal at Booz & Company, explained: "Clients shifted their assets towards simple, transparent, liquidity-oriented products with lower margins. Structured products in particular fell from favor, and clients largely retreated from risky and complex asset classes."

From Spring 2009 to late 2010, confidence returned to the markets and many investors were once again upping their risk threshold to try and recoup their losses. But the bonanza was short lived. Profound structural defects in the United States and Europe have been hounding their economies and fear has reentered the market.

Many of the private bankers who spoke with Executive for this special report said the turmoil in the markets has instigated a shift in mentality amongst clients. "People only learn from their mistakes," said Khaled Zeidan, general manager of securities and structured products at MedSecurities Investment, "and people have been burnt a lot here."

According to AM Financials Managing Director Mohammed al-Hamidi, "In general, the environment is very conservative. Not a lot of people are taking risks and that's why we see that yields on bonds in the US are going down, the stock market is very volatile..By Alex Lippa Close-up of Air purifier in Massachusetts.If so, you may have a Plastic molding .. [Clients] are not trusting anybody". It is a classic case of once bitten, twice shy.

Whilst there are still gamblers and seasoned traders seeking the quick buck to be made in the storm, most clients have shifted their expectations.where he teaches porcelain tiles in the Central Academy of Fine Arts. Preservation of capital has usurped quick-fire trading as the order of the day. Head of Private Banking at BlomInvest Bank Georges Abboud said: "We are educating the bankers and the clients to move from a trading mentality to a more diversified, long term strategy."

Abboud claims, however, that investing in equities can still be considered a responsible option if played right. "If there is a high yield, say 8 percent, low debt, and you have reliable revenues over the coming five years, then buy! There is a risk it could go down with the market but I am comfortable with the risk."

Private bankers consider a core aspect of their work to educate and inform the clients. But Jean Riachi, chief executive officer of FFA Private Bank, has found that convincing the Lebanese client to ignore the short-term vicissitudes of the market is not always an easy task. "We would like to convince people to forget about the volatility in the short term. But people are very difficult to convince, they have to look almost daily, in any case monthly, at their net worth, and they will panic anytime you have a fall in this valuation," he said.

The rotten roots of today's market instability are sunk in the very shores that have long been the bedrock of the global economic system. The 2008 banking crisis, the Eurozone sovereign debt crises and the US credit rating downgrade have upended many previously held assumptions about what is a 'safe investment'.

According to Al Ahli's Raad, "what's risky nowadays are definitely the international banks in the US and Europe and sovereign bonds in Europe.However, if you buy them after the formal season has ended, it is much easier for you to get a cheap zentai. Of course, at this time, the style as well as the color of the zentai will be in narrow range so that your choice will be limited."

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