Eddie's Investment Tips

The Energy & Inflation Age

Click Here for Investment Information on Eddie's Energy Picks. When global recovery commences where will the next fortunes be made and lost? The sheer scale of money creation by Governments to re-inflate economies may lead to very high inflation, supercharged by a return to a commodity bull market as the appetite for raw materials like oil, gas and metals returns. Once despair and fear is substituted by hope and confidence it will be too late to get in on the ground at prices that have already factored in a multi-year recession because the dam burst of huge levels of cash built up in US Treasuries, mutual funds and banks will flood markets. Everything will lift but so too will inflation. Diversified investments in energy, energy efficiency, green energy, commodities and inflation-linked Eurobonds could help protect your balance sheet if you have no exposure already to these high inflation-sensitive sectors. Cash Deposits and Fixed Interest investments will be hammered if high inflation emerges as the next cycle. Below are my picks on some local retail funds available. If you’re interested pop us an email and we’ll tell you more including about our zero sales commission at the cheapest entry terms around.

EStar Gold Factsheet (153 KB)

SL Euro Inf Linked Bond (78 KB)

JPM Global Natural Resources (74 KB)

Invesco Energy (418 KB)

KBC Alt Energy (74 KB)

EStar Earth Resources Fund (113 KB)

KBC Water (73 KB)

IL Commodities Index (48 KB)

EStar Green Res Factsheet (134 KB)

Click Here for Investment Information on Eddie's Energy Picks

Invest in Gold

Gold, is a vital asset to own, is a commodity in its own right, acts as a safe haven and a store of value in times of great uncertainty including when oil prices surge, the dollar weakens and confidence ebbs from currencies. I’ve been recommending Gold as a hedge in a balanced portfolio of uncorrelated assets for several years, ever since it was trading around $400 per troy ounce . The old adage is full of wisdom; invest 10% to 15% in Gold and hope you’ll never have to rely upon it. You can buy Gold in three ways. Firstly you can invest in certificates directly from the Perth Mint in Australia through its European agent, Dublin-based GoldCore with whom we have established terms of business. Secondly you can invest directly in an exchange traded fund such as ETFS Gold Bullion Securities quoted in London or thirdly you can invest through a familiar brand Zurich Life ( formerly Eagle Star) who invest in the same exchange traded fund but at a higher cost. The counterbalance is that when you take profit you can avoid Capital Gains Tax by switching to other Zurich Life funds within its range. (Every 8 years under Irish tax law a 28% tax on profits is levied on unit-linked funds but, in the interim all roll up is Irish tax exempt). Gold is a volatile asset which, during the global economic crisis has been trading in the range $750 to a tad over $ 1,000 per troy ounce. If, as I expect, we enter a long inflationary period as we emerge from recession characterized by a return to high oil and commodity costs and a huge overhang of Government debt, gold prices are likely, though not certain to rise strongly. 

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EStar Gold Factsheet (153 KB)