Fri, 04 Jul 2008
2nd Podcast – Paul
For awhile I have held reverse tracker warrants in my portfolio, SH32 is an excellent purchase, particular when the markets rally for 3-4 days. The market is likely to be under continued pressure and all investors would be wise to take advantage of this type of investment. However as the market falls, you should be reducing your exposure to shorts in my opinion. Whilst I am tipping buys like Park Group, you do need to make sure your portfolio is protected, otherwise wait for lower share prices.
Gold could take years and years to make profit (moving considerably upwards) and I don’t fear inflation or large scale oil prices at this time. The demand/supply balance of oil can be quickly corrected and growth figures will need to increase before we see rampant inflation.
posted at: 16:03 | path: | permanent link to this entry
2nd Podcast – Stephen
Gold! Always believe in your soul, you've got the power to know, you're indestructible.
Gold is also a 'flight to quality' asset class where the August future has just jumped 3.4%. It has promised many times in the past and rarely delivered the returns that many investors expected but given the global economic environment, a bit of exposure to this commodity would suit many portfolios.
Gold is an effective hedge against inflation and oil price rises - in fact it can protect against broad erosion in the value of money since the shiny stuff is an age old store of wealth. When the economy suffered from stagflation in the 70's, it was gold that enjoyed a decade long bull run. While things are not so bad today, the core reasons for inclusion in a portfolio are present. Gold should also benefit from slowing supply as sales from Central banks decline and increased demand as investors in emerging economies accumulate.
Investors are spoilt for choice when it comes to methods of accessing gold with ETFs, ETCs, structured products, covered warrants, funds and mining shares on offer.
posted at: 15:29 | path: | permanent link to this entry
2nd Podcast – David
SH32. Catchy title ? Don't those letters just roll around in your mouth like a juicey New World Red (wine that is). all the aroma of panicking markets, the slow onset of despondency and gloom. Investors bailing out.
Yep this is a covered warrant put that makes you a whole bundle of money if the FTSE 100 keeps on falling between now and December of this year.
If, and it could change any day, but if the FTSE 100 stays at around 5500 and then heads down 10% to just under 5000, this'll make a 90% return. If you'd have bought a few weeks back when the FTSE was closer to 6300, you'd have made double that, but beggars can't be choosers and I'd predict that the market will behave oddly on its way down past this barrier. I think there might be a small rally in the coming weeks and you may get a good chance to buy this covered warrant put at a better price but the overall pattern of trading is clear - the bulls are selling out and the bears are taking over. You could of course make alot more money on shorted dated options or spread betting but that's too short termist for me - markets are too volatile at the moment and I'd be terrified of being stop lossed if the markets move up a few per cent.
Its issuer SocGen have a huge range of covered warrants to suit just about every bear - even a commodity bear like myself - and you can test them all out at its web site at uk.warrants.com - Trading Tools on the left hand menu. I'm closely looking at a warrant - SV97 -that'll make an awful lot of money when the price of oil eventually turns and heads south. I'm not rushing to buy it as I think oil is still on its way up but economic gravity must eventually weight on oil prices as the global economy skids into a recession and I intend to be there to make a profit from OPEC's much deserved misfortune.
posted at: 11:43 | path: | permanent link to this entry