|
|
 |
|
| News & Scoreboards |
10 Questions for Your Private Banker - 7/04
07/01/2004
|
The 10 countries that joined the European Union
on May 1 will soon align their tariffs with those of the other 15 EU members.
They will raise some trade barriers and eliminate others. Will this affect any
of my business interests or investment opportunities in Europe or
elsewhere?
The catastrophe bond market is booming; $1.73 billion of these
instruments (bonds that fall in value in the event of specified natural
catastrophes such as earthquakes or hurricanes) came to market last year. These
investments have performed well in recent years. Should they be a part of my
portfolio?
Growing concern that China will rein in its burgeoning economy by
tightening monetary policy has some investors worried that the bull-run in
commodities—spurred in part by demand from Asia—may be nearing an end. How
exposed am I to the energy, metals and other natural resources
markets?
Telecom companies are purchasing voice-over-IP technology developers
(which devise ways to place telephone calls over the Internet) at a rapid pace.
If this technology delivers as promised, what dangers would it hold for my
investments in traditional telephone utilities? What opportunities would it open
for new investments?
Warren Buffett excoriated mortgage giants Fannie Mae and
Freddie Mac for their use of financial derivatives, which he believes puts these
government-sponsored entities (GSEs) in serious danger. How much GSE debt do I
hold in my portfolio? Are Buffett’s criticisms valid, and if so, does it make
sense to reduce my exposure to these entities?
|
|
|
|
|
|
|
