Yes it is Sabbath but heed to worldly wisdom. Given the foolish mission and statements which have been made about the deliberate allowance for devaluation of the Jamaican Dollar, heres what you out there should all do if you want to make a killing on returns : 1. Convert your Ja$ investments to US$ instruments. The Gov and IMF already have sanctioned the devaluation which is simply not speculation in this case. So, what instruments you have your J$s in ? Regular savings, fixed deposits, stocks, unit trust, mutual funds, Repurchase agreements, insurance-based investment ? What ? Convert to US$ as you stand to make a killing. So what if your monies are on a certificate of deposit type instrument ? You already getting a ridiculously low return anyway, so break it and buy US$. Listen, $10mil fetching less than 2percent (before tax)on CDs some places. Repurchase Agreements - Repos - which are offered by investment houses are unattractive to these financial institutions who, inturn, seek to make them very unattractive to clients with very low rates offered. Hence, a Repo may offer less than 3% on same $10million. Given these instruments attract a tiered rate system, can you imagine what rate a mere100,000 would get ? Close the Repo and buy and hold the US. That is my recommendation. Do it. These guys practically tell you the US will not have any intervention by the Central Bank because it is over-valued and has a far way to go to experience its true value. What nonsense?! The IMF and the Ja.Gov endorse this move. So, you all stay there and dont try to get something for yourselves ! What is in it for you ?! Do you have one of those supposedly long term instruments...5yr plan ? It is your money and can always be broken. Break it and take some of those monies and buy US$s. For the most part, what is the penalty you may be asked to pay? Withholding taxes on the meagre profit you would have made to that point of breaking the instrument. Ofcourse the profit would have been meagre, its an environment of low rates for fixed income instruments. So break the 5yr.plan and give up that trickle of profit (25% of interest to date) and use the portion of the funds you take off to buy US$. See how much time am telling you all ? Dont do it at your own risk. So when you convert these monies to US, what should you put it on ? Even if you convert these monies and keep them in a regular USD Savings account not earning much interest (.20%), you are still not expected to lose because with the rapid devaluation expected and sanctioned by the IMF and Ja Gov, you will still make a killing. People, buy US. Putting the funds in a US CD or a Repo is likewise recommended. However, the uncertainties and poor performance and management of Mutual funds in recent times is not my recommendation. Keep the instrument simple as I suggested and when the Dollar slide has tapered off, you could easily convert some back to JA$ instruments with more attractive returns. In addition, mutual funds come with front end or back end load. These are percentages taken out at the beginning of an investment (front end load) or when cashing in (back end load). Plus there may be other management fees taken out from an instrument which does not give an interest rate but merely a potential return. However, people whatever instrument you choose, just make sure you all just go out and buy up US dollar quickly. Anyway you take it, the Gov and IMF will get what they want because the demand for the US will push its price up - devaluation. Only, you just better profit from this move!
Posted on: Sat, 28 Jun 2014 02:25:20 +0000