Wednesday, September 17, 2008
With world financial markets in turmoil and no end on the horizon, what is a savvy global investor to do? We’re advising many of our clients to park spare cash in short to medium term fixed income securities. This will enable you to take advantage of recently risen interest rates in Russia while choosing a financially solid company, of which there are many. You’ll still have the flexibility of not tying up your money so when the market does bottom, your ready to jump at the opportunities.
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Foreign investors withdrew $85bln from Russian stock market within last months. A lot of voices critics Treasury Secretary Kudrin for investing more than $200 bln in US T bills with the APY 2.5%. Then US Banks buy these funds for 5% and resell back to Russians for 17%. Why doesn’t Kudrin sell this cash to Russian directly for 6%?
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