Why today’s investors must think globally

History reminds us that no nation ever pays off its debts outright, and that all government debt is eventually – and inevitably – inflated away.
It may be quiescent for now, but to ignore the time-bomb of inflation is to do so at one’s own peril. It’s a risk that could well be reflected in an ever-rising gold price (currently over U.S. $1300 an ounce, and counting), as well as an ever-sliding (and cheaper) U.S. dollar.
The U.S. dollar, the world’s reserve currency, keeps on sliding despite the pressures on China to lift the value of its yuan and a growing groundswell of foreign currency posturing.
The latent inflation risk is another reason why investment strategies must remain focused on equities. Besides, it’s invariably better to be an owner than a debtor and to have interest (and dividends) payable to you rather than by you – and ever more so now.
Adding to the case for being an owner rather than a loaner is a global economy being slowed by the U.S. but offset by a burgeoning new world order led by Asia, Latin America, BRIC (Brazil, Russia, India and China) and other rising powerhouses.
There’s also China’s ever-lengthening investment clout, witness Potash Corporation of Saskatchewan contemplating a Chinese white knight to rescue it from the hostile (and underpriced?) clutches of BHP Billiton? It’s but one more example of why today’s investors must think globally.
In Europe there’s encouragement too, despite nation-wide strikes in France and intensified payback stresses in Greece, Ireland, Iceland and others.
In Britain, the determination of David Cameron’s new coalition government to get on top of its huge debt and deficit problems remains especially noteworthy. One respected English friend writes: “The majority of the British people know that the problem must be addressed now and will back the government against an overpaid, overprotected and quite often bone-idle public sector”. Another comments on how many UK companies have come through the recession surprisingly well and have sustained earnings better than might have been expected.

You can never count the U.S. out

Tony Boeckh (of the Bank Credit Analyst) puts the case for today’s America best: “It’s got a trillion-dollar deficit monkey on its back, its consumers have been gutted, its housing and banking sectors could take years to recover, and its currency is a dog…. You can never count the U.S. out – it has an incredible ability to rediscover itself and rejuvenate.”

Deloitte reports Private Equity's Confidence

Private equity is stepping up and getting the results where the public market lags. A report from Deloitte goes on to explain:

 There is still confidence and optimism among private equity fund managers (GPs), according to the latest Mena Private Equity Confidence Survey released by Deloitte. The annual survey, conducted for Deloitte by Arbor Square Associates, is designed to measure confidence and market sentiment in the private equity market.

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Jacoline Loewen, Private Equity expert and author of Money Magnet.

4 Lessons from Physics for Marketing

Marketing and physics do seem a natural combination but here is a talk by Dan Cobley, a physics expert, on 4 lessons marketing can draw from the common laws of physics.

NI 31-103 is a really bold change

Individuals and firms who distribute exempt-market securities are scrambling to meet the new requirements they’ll face beginning Sept. 28. In fact, some are even moving out of the exempt-securities realm altogether as they assess the drastic regulatory reforms associated with National Instrument 31-103.

The new regulations include widespread changes for exempt-market dealers. EMDs include those who distribute prospectus-exempt securities such as hedge funds, principal-protected notes and limited partnerships, as well as those who work with accredited investors. 

“This is the one area of NI 31-103 that is a really bold change,” says Geoffrey Ritchie, executive director of the Toronto-based Exempt Market Dealers Association of Canada. “It’s a huge transition.”

Most of NI 31-103’s new regulations came into effect on Sept. 28, 2009. However, existing EMD firms and reps had one year to comply with some of the requirements. Regulators are warning that registrants who fail to meet the looming deadline could face immediate suspension until they comply.

For firms dealing in exempt securities, the upcoming deadline includes new capital requirements, beefed-up disclosure rules and new filing requirements for financial statements. Dealing reps at these firms, meanwhile, face new proficiency requirements under which they must successfully complete either the Canadian securities course offered by Toronto-based CSI Global Education Inc. or the more specialized exempt-market products course offered by the Investment Funds Institute of Canada’s IFSE Institute. 

Chief compliance officers with EMDs are also required to complete one of these two courses, along with either IFSE’s officers, partners and directors course or CSI’s partners, directors and senior officers course.

The new proficiency requirements are intended to protect investors, according to the Ontario Securities Commission, by ensuring that reps who deal with the exempt market meet minimum qualifications.
Find out more about the Exempt Market Dealers Association http://www.emdacanada.com/