REGULARS
Where do offshore equity investors find themselves after the sub-prime dust settles?
These articles have been published in “The Observer” magazine for over five years now and I will be the first to admit that, if you are a regular reader, you at times detect a repetitive theme. I will be the first to own up on that and in mitigation it is not always easy to come up with an original article every few weeks. A British TV financial journalist once told me that most financial journalism was at least 60% plagiarism. Be that as it may this month I want to have a look at where offshore equity investors stand after the dust has settled on the sub-prime crisis. I am making a big presumption in thinking the worst is over but right now on the 11th. October 2007, at the time of writing this article, I’d like to look back on the year so far.
I’ve had quite a few panic phone calls from investors during August and September, panicked by the sub-prime media coverage. “Anyone invested in equities was now paying the price for their reckless abandon”, was the impression I certainly got from the electronic and paper media. Deposit investors sat back with glee and gloated at the poor senseless investors until the Northern Rock crisis hit the UK and people for a few days rushed to get their money out. When I saw one NR investor say he had a million on deposit, I wondered whom the senseless investors were, knowing the compensation pittance paid to deposit investors in the UK.
Anyway back to my main theme. I advised all panicked investors to sit still and not switch out of equities. My reasoning was that if they did they would miss the bounce back. Fundamentals in world economies had not changed and in my opinion the best bet was to sit back and wait for the bounce back.
So how did that advice work out?
Let me give you some examples of offshore investment performance this year with, as I write, still the most of 3 months to go and also for years 2006 and 2005. I have selected the best performers and the worst over sector and world equity markets.
So what conclusions can we draw from these performance figures?
The first sensible conclusion would appear to me to be to avoid Japan. All the rest have done remarkably well and as always, the lesson I get from the sub-prime debacle is, for offshore world investors to hang in there. To be equity investor the first requirement is to have a long investment time frame. The second is to be a risk taker.
It should be pointed out however that every balanced portfolio should contain some of these funds.
I have a few young guys with modest portfolios who have them invested in these funds totally in the hope to double their capital in the short term. For some of them it will work and they can then switch to secure funds. If you are retired and living off your capital with no hope of earning more money, it goes without saying that investing all your money here is for the foolhardy.
The only question you must ask yourself is can you stand the heat? Do you drive a motorcycle around at 120km an hour in Thailand? If you do, perhaps you should look here irrespective of age. Your comments appreciated to jerry@swissinvestcenter.net
dGeek TV Buying Guide
Look out ma, ‘ol square eyes is back! The range of televisions available now is huge, and this month we take a look at the choices...
TV Buying Guide
Televisions are a central feature of most households, and many homes have more than one. But gone are the days of simply choosing the biggest set you could afford or finding one that would fit in the alcove. Now there’s an array of technologies to choose from and, with the move to digital broadcasting, you need to make sure your new purchases are future-proof too.
New TVs cost money, and some cost a lot, so it’s worth making sure you spend wisely.
Cathode ray tube (CRT) TV
CRT TVs are the ‘traditional’ televisions that have been around for years, where the picture is formed on the wide end of a glass cathode ray tube. This design has an inherent top-end size limit because of the length of tube needed to form the picture, and therefore the sheer weight of the tube in larger models. There are now some thinner tubes on the market though, so it’s worth comparing the overall dimensions of CRT models of the same screen size.
Despite the size issues, the technology is still very much alive, and high-end CRTs can offer great-looking pictures for not a lot of money. The quality and depth of black and dark colours is very good, and they can be viewed from any angle, especially models with new, flatter screens that reduce the problems of reflected ambient light.
Always check the reviews for any model you are considering buying, as CRT TVs can suffer from more geometry errors than flat-screen TVs, causing bends in straight vertical and horizontal lines. Also, if you want to watch programs from high-definition television (HDTV) receivers or progressive scan DVD players, you need to make sure your CRT TV can accept and display them
Flat-screen TV
Flat-screen TVs use one of two technologies - LCD or plasma - to form pictures on a device that is only a few inches thick. Their thin size means most can be hung on a wall or, when on a stand, take up much less room than a CRT TV. They can also be built to give bigger pictures than the largest standard CRT set, particularly the plasma models.
Flat-screen models can be prone to ghosting, smearing and judder when displaying standard pictures rather than high definition ones, so reading reviews is a must (just make sure the reviewer has been watching the same kind of images as you will be). You may also have to spend a little time setting up your TV to get the pictures how you like them, as they have extra settings you won’t find on CRT models.
LCD TV
LCD TVs use the same technology as flat-screen LCD computer monitors. They are available in a wide range of sizes, from very small portable devices up to models that are much larger than the biggest CRT, although at the top end the prices can be expensive.
They offer high resolution images but, when it comes to colours, LCD TVs don’t show a true black because of the way that LCD technology works, and colour saturation isn’t always as good as plasma screens. And if you watch an LCD TV from an angle instead of from directly in front (this is called the ‘viewing angle’), the brightness and colours of the image can again be poor compared to plasma models.
All this is relative, though: LCD screens are improving all the time and the performance of individual LCDs can vary a lot, so you should read the reviews of any model that otherwise meets your needs.
Plasma TV
Plasma TVs have thousands of gas cells emitting ultraviolet light, which then strike red, green and blue posts on the screen, which in turn glow to build a picture. They offer wide viewing angles and great colour quality. So even though they used to be comparatively pricey, they have a reputation as being the best solution for large home cinema solutions.
On the downside, plasma screens generally have lower resolutions than similar sized LCDs. They also have a reputation of suffering from ‘burn-in’, which is when a static image gets etched permanently onto the screen. This can happen when part of the image is displayed in the same place on the screen for a long time (for example the black bars you get at the top or side of a TV show that is broadcast in a different format from the TV screen). This may not be an issue if you are careful for the first 100 or so hours that you use your new TV, and many manufacturers have been addressing this by adding special features, such as screensavers, or settings to treat the problem.
Plasma TVs also tend to use more power than LCD screens, so be careful not to waste energy unnecessarily when you use one.
As with LCD TVs, you should check the reviews of any models you are interested in, as all these features and potential problems can vary widely between models.
The viewing distance is less dependent on the technology. Instead it depends on the format (widescreen or traditional 4:3) and resolution of image you are viewing. If you are mainly going to watch standard resolution and format images, then you should be sitting at a distance of three to six times the width of the screen. However, if you are going to watch widescreen, high resolution DVD and HDTV, you can sit much closer to immerse yourself in the show, so you can be just one and a half times the screen’s diagonal measurement away.
So if you want a TV for your bedroom where you may be sitting from 4 to 8 feet away, your choice may be anything from a 20-inch standard format TV right up to a 30- or 34-inch widescreen TV if you’re going to watch high-resolution DVDs. In a large living room you might want a 36- or 40-inch TV to watch daytime TV shown in standard 4:3 format, or something as big as a huge 60- or 65-inch widescreen TV if you are planning ahead for HDTV.
Remember that TV screen sizes are measured across the diagonal, from one corner to the opposite one.
Mag’s Page
You would think that, after such a long absence from these hallowed pages, everything would have been ready in good time - and with plenty of material to rip to shreds into the bargain.
Wrong. The same old last minute rush. I’ve realised why publications have deadlines. It’s nothing at all to do with going to press. Just a sneaky way to get contributors to put fingers to keyboards.
Not that there has been a lack of material over the summer months, in fact quite the opposite. Floods, the smoking ban, changes at No. 10, the smoking ban, the ongoing Dianagate inquest, the smoking ban. All these things provide plenty of opportunities for comment, but all, (apart from the smoking ban) somehow lose their impact a week or so after the event as something even more shocking hits the headlines. A good example was Camilla’s change of hair colour last week. For those of you who missed the stunning piece of news she went white. And who wouldn’t, waking up next to that every morning?
Seriously though it has been quite a stressful few months, starting with a frenzied attack on Him Indoors by a quite mad Irishman (who is up in Crown Court for sentencing in a couple of weeks time!)
It was probably as good a reason as any for moving house. Living in shared accommodation can be economical and chummy, but you just never know what the person in the next room is on. So the inevitable rounds of Comet, Allied et al start with a vengeance, in the vain hope that everything will arrive intact on the right day. Wrong again. Mind you the experience of cooking full meals in The Land of Smiles with just two rings and a microwave can come in handy at times.
What comes as a real culture shock in the UK these days is having to deal with the various providers of utilities. My pre-Thailand experience of this was back in the days when each Region had its’ own electricity and water board, and British Gas and BT reigned supreme. Now you have to make a wild guess as to which company might be providing your water and phone line. The ensuing telephone conversation goes something like ‘What is your postcode....are you sure?....where did you say you are?....let me just check again...isn’t that near Doncaster?....well you don’t seem to be on our map’
Then an interesting exchange with BT. Having queued and keyed in my phone number twice to get through to a Real Person, the first thing the Real Person says is ‘what number are you calling from?’
But the fun really starts when you choose a provider of gas and electricity who didn’t supply the previous occupant. A very intense meter reader swore that he had to take readings for the previous supplier a full month after I had moved in. All attempts to explain that my new provider had taken readings thank you very much fell on deaf ears. To cap it all Meter Man discovered something ‘melting’ in the meter box and declared a state of emergency, cutting off the gas supply with dire warnings. It turned out to be a somewhat ageing and solidified mass of cavity wall insulation.
Fortunately not something expats out there will have a problem with. Nor will you have a problem with The Smoking Ban. OK it was inevitable - I just had to get round to it - but 4 months down the line it is no easier to cope with, and is still the main topic of conversation in pubs here. Shortly after The Ban on July 1st a nasty smell began to infiltrate my local hostelry. Nasty maybe isn’t a strong enough word. Suffice to say the pong was put down to The Floods and subsequent effluent floating around in the drains.
In an open bar smells waft in and out again, especially when there are fans to help them along. Here in chilly old England there is generally uproar when doors are left open, so that nasty smells just build up and fester into your Guinness.
So it was that we put up with ‘the drains’ until a newspaper article revealed the truth. Nasty smells in pubs were there all the time, but were masked by the smell of cigarette smoke. Elementary!
Breweries are now experimenting with ‘piped smells’ to redress the balance and - guess what? - are even introducing the smell of cigarette smoke. Lets hope it’s been cleared by the ‘elf n safety.
Arts & Culture
“Fire Works”
An exhibition by Clare Gaylard, 1-29 November 2007. ‘Fire Works’ is a sparkling exhibition of flamework glass and supporting paintings by Bangkok based artist Clare Gaylard. Clare works with molten glass in an open flame to create one-off pieces of glass jewellery and the unique stacked sculptures she calls ‘Monuments on a tiny scale’.
Clare is inspired by the colour and flow of the fine Italian glass she uses. Glass is an extraordinary medium: form, colour and also light give an unusually dynamic appearance to the finished jewellery. Her themes vary, there are abstract pieces where the placing and movement of colour is predominant or organic forms that mirror the flow of water or movement of clouds.
Clare has always been interested in mythology, religion and the artifacts of varying cultures. Her work reflects this in figures such as minotaurs, masks and angels. ‘I also like the idea of expressing the beauty of the small. My King and Queen figures are archetypes in miniature.’ There is a precious quality to work of this scale, enhanced by the fact that one can incorporate precious metals such as gold and silver.
Clare went to learn the rudiments of flamework at Hoglund Art Glass International Centre in New Zealand. ‘Having trained as a silversmith, painted, created and taught art for many years I feel as though at last I have found the perfect medium’.
The Garden Gallery & Café and The Rotunda Gallery are at the Neilson Hays Library, 195 Surawong Road, Bangkok
(Tel. 02-233 1731) and it’s opening hours are: Tuesday-Sunday 9.30 am - 5.00 pm.
“The Colour of Land”
An exhibition by Vietnamese artists
Le Duc Hai & Le Ngoc Thanh, 1-29 November 2007. ‘The Colour of Land’ is Vietnamese twin brothers’, Le Duc Hai & Le Ngoc Thanh’s, 4th solo exhibition in Bangkok Thailand. Le Duc Hai and Le Ngoc Thanh’s large scale lacquer paintings are a fusion of East and West. The legacy of the French Impressionists, the rich Vietnamese cultural traditions and spiritual symbolism are readily apparent in their paintings. Both artists are known for their use of explosive colours to create impressive graphic abstractions, each in their very distictive individual style.
Le Ngoc Thanh and Le Duc Hai were born in 1975 in the white sandy soil of Quang Binh to a family of modest means. In 1992, they enrolled in a three-year college course at Hue Arts University. After finishing the course, they continued with university training there and graduated in 2000. Their two exhibitions in 1996 and 1997 caused a surprise among Hue artists for they bespoke the boldness in lacquer painting, the contrasts of colour and wild and naive outlines. In their paintings, one can find the motifs typical of the decorations found in Hue royal palaces. Besides painting, Le Duc Hai is currently teaching in Art College and Thanh manages two galleries.
Le Ngoc Thanh’s and Le Duc Hai’s work is widely sought after by local and international collectors. The twin brothers exhibited multiple times in the USA, Holland, France, Germany, Japan, United Emeriates, Laos and in their home country Vietnam.
The Rotunda Gallery is at the Neilson Hays Library, 195 Surawong Road, Bangkok
(Tel. 02-233 1731) and it’s opening hours are: Tuesday-Sunday 9.30 am - 5.00 pm.
Useful Telephone Numbers for Hua Hin
Railway station
032-512 770, 032-511 073
Bus station of Hua Hin
032-511 654, 032-512 543
Bus station of Prachuabkirikhan
032-601 901
Bus station of Pranburi
032-621 443
Hua Hin Hospital
032-520 401
Dog Rescue Center
0-1981 4406
Wild life Rescue Center (Tayang)
032-458 135
Department of Land Cha-am office:
032- 430 846-7
Department of Land Hua Hin office:
032-536 164, 032-512 407
Department of Land Prachuabkirikhan:
032-611 211
Department of Land Pranburi
032-622 199
Local Government (Hua Hin)
032-521 340, 532 471
Local water supply
032-511 677
The Power Board of Hua Hin
032-512 215, 032 513 165
Observer office:
032-531 078
Red Cross.
032-512 567
San Paolo Hospital
032-532 576-85
Polyclinic International
032-516 424, 032-516 425
Shell Cooking Gas
032-511 144, 032- 515 620
The Communication Authority of Thailand
(Hua Hin)
032-511 351
Rotary Club of Hua Hin
0-1916 6637
Meeting every Thursday 8.pm
at Hua Hin Grand Hotel & Plaza
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