Stimulus is a chance to cash in for some



Markets have been shaky after the disaster that swept through Japan and the continued unrest in the Mena region. What does that mean for your portfolio? David Pinkerton, the chief investment officer of Falcon Private Bank, which has an office in Dubai and a new one slated for Abu Dhabi, shares his thoughts.

What's the market sentiment right now?

We've been on a risk "off mode" for the last three to four weeks. But with that said, all of the fiscal and monetary stimulus on the way around the world will reward investors.

Which asset classes will benefit most from the stimulus?

Equities and commodities, in general. Bonds in the emerging markets, where there's a high interest rate paid by those issuers.

Many stock prices have fallen in Mena countries with continued unrest, and even some countries such as the UAE that are just in the neighbourhood. Do you see good growth opportunities in equities right now?

A lot of these countries still have a lot of political risk. Over the next couple of years, we think there'll be equity opportunities in the region. But there seems to be a lot of diverging economic and political pressures right now, and we'd rather take the play on the debt side as opposed to the equity side.

What is it about the debt side that seems promising?

Right now we think there's most value in some of the debt instruments issued in the region, where governments and related entities are paying high interest rates or coupons for their credit because of general concern over the region. With that said, we think the governments here are also supporting, and committed to, diversifying their economies and building up their infrastructure.

How?

There's the 2030 plan in Abu Dhabi. There's a whole series of companies that are strategic and imperative to meeting that plan. And because of what people are observing in Egypt, there's also a commitment there to move forward to building out the infrastructure. It's even stronger than before the unrest.

Some experts, including the billionaire investor Warren Buffett, say deflated stock prices in Japan present a good buying opportunity. What's your take there?

We have a market weight to Japan at the moment, and I have had a long and frequent set of discussions with my team on how we should react to these events. The issue with investing in Japan for people who aren't based there and have local currency is that equity prices are going up but currency is going down because they're issuing more of it. In Japan, the yen is weak.

So what's the takeaway on Japanese stocks?

You may make it with equities but you could lose it on currency. Be careful of investing in markets other than your own. You have two risk factors: the equity and the currency.

How will the ongoing nuclear threat affect the energy markets?

This event in Japan is going to create a social backlash against the use of nuclear as an alternative fuel, and people will go back to the use of oil. This will keep demand for oil - and prices for oil - strong.

Is there an opportunity then for investors interested in oil?

It depends on timing and the nature of a person's portfolio, but there's a trend for oil prices to continue to go up. It will be volatile, though.

'The Last Days of Ptolemy Grey'

Rating: 3/5

Directors: Ramin Bahrani, Debbie Allen, Hanelle Culpepper, Guillermo Navarro

Writers: Walter Mosley

Stars: Samuel L Jackson, Dominique Fishback, Walton Goggins

Kill

Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5

2020 Oscars winners: in numbers
  • Parasite – 4
  • 1917– 3
  • Ford v Ferrari – 2
  • Joker – 2
  • Once Upon a Time ... in Hollywood – 2
  • American Factory – 1
  • Bombshell – 1
  • Hair Love – 1
  • Jojo Rabbit – 1
  • Judy – 1
  • Little Women – 1
  • Learning to Skateboard in a Warzone (If You're a Girl) – 1
  • Marriage Story – 1
  • Rocketman – 1
  • The Neighbors' Window – 1
  • Toy Story 4 – 1

Director: Nag Ashwin

Starring: Prabhas, Saswata Chatterjee, Deepika Padukone, Amitabh Bachchan, Shobhana

Rating: ★★★★

MEDIEVIL (1998)

Developer: SCE Studio Cambridge
Publisher: Sony Computer Entertainment
Console: PlayStation, PlayStation 4 and 5
Rating: 3.5/5

Why your domicile status is important

Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.

Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born. 

UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.

A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.

KEY DATES IN AMAZON'S HISTORY

July 5, 1994: Jeff Bezos founds Cadabra Inc, which would later be renamed to Amazon.com, because his lawyer misheard the name as 'cadaver'. In its earliest days, the bookstore operated out of a rented garage in Bellevue, Washington

July 16, 1995: Amazon formally opens as an online bookseller. Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought becomes the first item sold on Amazon

1997: Amazon goes public at $18 a share, which has grown about 1,000 per cent at present. Its highest closing price was $197.85 on June 27, 2024

1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs

2000: Amazon Marketplace opens, allowing people to sell items on the website

2002: Amazon forms what would become Amazon Web Services, opening the Amazon.com platform to all developers. The cloud unit would follow in 2006

2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black

2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year

2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video

2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started

2009: Amazon introduces Amazon Basics, its in-house label for a variety of products

2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013

2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS

2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa

2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition

2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone

COMPANY PROFILE

Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others


Latest
Most Read
Top Videos

The UAE Today

The latest news and analysis from the Emirates

      By signing up, I agree to The National's privacy policy
      The UAE Today