Conference nyoss1::market_investing

    Re. .2
    
    You mean shorting it?

	I wouldn't put any money on Euro-Disney or Euro-tunnel.

	I'll buy an FT tomorrow and see what they have to say.

	It's quite dodgey here at the moment, have a look at some of my
	comments in 16.*
	
	Heather

    I'm playing Europe rebound via Fidelity Int growth + Income fund. Up 
    about  19% so far this year - no-load.

    I've played it safe this year:
    
    		Italian bonds
    		Dollar based bonds
    		Various french and swiss stocks
    		D-mark deposit (about 7% p.a. at the moment)
    		European equity fund (Unibank) +18% since march and +14.4%
    					       for all of 1992
    	
    
    As for now, hmmm. That depends on how far you think interest rates will
    fall. Most european bourses are hovering around all-time-high,
    so there is an element of risk here.  Another thing is what's going
    to happen when the big fund managers return from vacation ? If
    they go on a profit-taking spree it may be an opportunity pick up
    a few bargains.  
    				/Soren

    Are there any special restrictions on a US citizen owning stock in a
    company based outside the US? Could that investor just deal with
    a brokerage house such as a Schwab or Merril Lynch?
    
    
    Dave

    
    There is certainly no restrictions from a european point of view. You
    can buy almost any european stock through most banks here. There best
    ones will do it while you are on the phone and the charge is around
    1% - although a certain minimum fee applies.  Depending on the country
    where the bank operates from a stamp duty may apply as well.
    				/Soren
    PS:
    Some scandinavian countries (especially Finland, Sweden and Norway)
    still have some limitation to foreign ownership of A-shares.  A
    relaxation of this limitation plays a big part in the latest strong
    rally in Helsinki.

What about the notion of buying British public debt instruments?

My wife and I took a brief vacation in London in May.  We stopped at
a post office to send postcards back home (and to get a "TV License"
application because we thought it was funny...).  I noticed a whole
string of prospectuses (prospecti?) for various bond plans that 
ranged from instruments designed for retirees, to redeemable-on-demand
bonds that could be redeemed at varying interest rates depending on
how long they had been held.

With returns anywhere from 6-8%, I found these sorta hard to pass by.
Yeah, it's not great, but it beats the heck out of CD rates in the
states right now.

Might be a real good place for conservative folks or as a parking place
for cash.  Any thoughts from our friends "over there" on this?

./chris

    
    My English bank is paying a heck of a lot more interest than DCU right
    now.
    
    I stick my assertion that the European econemy/movies/social trends is
    stuck 2 years behind whatever happens in the US. The DOW has benefited
    immensely from low interest rates, partly because companies are less
    loaded with high interest debt, and mainly because bonds people are
    switching into potentially higher earning equities.
    
    I still think the same thing is about to happen in Europe.
    
    Simon

    re: .9
    
    Buying European bonds may not be a "safe investment" for US investors.
    The risk is currency fluctuation. If the US currency goes up by 10%
    against British currency - buy the time you are cashing out, you will
    have a negative return on your investment. Now, if you plan to keep
    that $$ in Britain forever, that's a different story.
    
    Mike

	The stuff from the post offices would have been guaranteed rates, and
	safe.

	Some of them are attractive to us because of the tax-free status.


	I currently have 3,000 quid in savings bonds, it is guaranteed
	4.5% above inflation - tax free, and 100% secure.

	The down side is I only get it tax-free if I keep it invested for 5 
	years....I can take the interest tho@, if I want to.

	I'm thinking of taking out a BES, 13.5% tax free over 5 years...

	I need to cash in another equities based bond to do it though....I have
	to make up my mind soon, as the BES will be discontinued soon.

	Heather

    
    Helen,
    
    whats BES and when is it likely to be stopped? I'll be in the UK in
    October and wonder about whether to set some things up.
    
    Simon

	I wonder why a lot of people call me Helen.......still.......

	Business Expansion Schemes

	This was a deal set up by the government so people could put investment
	money into companies to help them expand......to help the economy, 
	jobs etc.
	It is a 5-year investment.
	It is tax-free.

	HOWEVER, someone found a loophole, and some of them invest in 
	university student accomodation, with a guarantee buy-back price
	from the university after 5 years.
	Returns can be equivilent to 14% gross (for higher rate tax payers - me)
	- This loophole will be closed in November.

	Some do mixed deals, with 50% guaranteed, and 50% linked to the FTSE,
	with lock-ins at 60% and 90% growth. - The Oxford University based one
	does this.

	I'm not sure about how the tax advantages would help you....it's also
	a 5-year committment, and I'm also not sure if you would want to
	risk a 5-year exchange rate bet!

	I like the idea of the mixed one, as it was going to be my "betting"
	investment anyway.

	National Savings Investment account may not be bad. 6.25% with
	zero risk, and you can take the money out at any time, with 1 month 
	notice

	Capital bonds you keep 5 years, have guaranteed 7.75% interest,
	zero risk.
	You can cash in early, but will have a lower rate of return. You can 
	cash in part of a bond. 

	The 36th (or37th) indexed linked issue currently gives 3.75% above
	inflation, tax free if you keep it for 5 years, you can take the 
	interest.
	It is also zero risk......I bought 2,000 of the earlier version last 
	Nov. which was 4.5% above inflation.
	Inflation is currently around 2%, forcast to rise to 4% at the end of 
	this year.

	Most of these are attractive for their tax-free status, and low risk.
	The downside is normaly the 5-year term, especially if you have the 
	currency fluctuations to worry about.

	Heather

	I forgot PEP's

	Personal Equity Plans.

	You can put 6,000 a year into them, you have to have them 5 years.

	All interest and growth is tax free.

	You can do single company PEP's, where you can choose the shares of
	the company you want to invest in. (utility companies are a favourite 
	for this type).

	Or you can buy ones based on a spread of unit trusts.
	The Perpetual Mutual seem to have the best record so far, If I decide 
	not to go for a BES, then I'll probably plump for a PEP.

	Heather

    Here's how the situation in Germany currently looks to me:
    
    - Long-Term bond rates have dropped significantly over the last year.
      The yield is currently ~6%, which is considered to be historically low.
    - Short-Term interest rates are expected to fall slowly under control
      of the German Bundesbank. 
    - Stocks have soared over the last three months, approaching
      historically high levels.
    - The US-Dollar has gained vs. the Deutsche Mark this year so far.
    
    Here's my interpretation:
    
    Last year's very high short term interest rates caused people to 
    put large amounts of money into short term deposits ( up to one year ).
    rates have dropped from ~8-9% to 6%, so this is no longer considered
    to be an attractive investment. 
    
    Also the expectation of falling long-term interest rates caused people
    to buy bonds, which showed healthy gains this year. With rates now at
    low levels, this also is no longer considered an attractive investment.
    
    Both trends lead to a high level of liquidity in the market, which made
    the Stock market soar. 
    
    With the economy in a deep recession, it is expected, that the
    Bundesbank will continue to lower short-term interest rates
    significantly.
    
    This might fuel further gains for the Dollar aginst the Mark.
    
    That's my view - and of course it might right or wrong. Time will tell.
    
    Klaus