Global diversification key to beating inflation, says Mayberry director

Published: Wednesday August 20, 2008

Mandeville, Manchester - Mayberry Investments Limited says making overseas investments, sprinkling a little of your money in various business sectors locally and internationally with a mixture of stocks, bonds and mutual funds is the perfect recipe for a sound investment.

Under the heading 'How to Make the Most of your Local and International Investments', Mayberry hosted its monthly investor forum in Mandeville for the first time late last Thursday at the Golf View Hotel. The first of two speakers at the educational forum Sushil Jain - a non-executive director at Mayberry - informed the audience of the purpose of investing money and also offered some investment do's and don'ts.

"The main purpose of investing money is to increase wealth and ensure that your money grows after it has been invested with the rate of inflation of the things we want to buy," Jain told the audience. "Any investment that gives you a rate of return lower than the rate of inflation is not a good investment," he explained further.

According to Jain, a good investment means global diversification; that is investing in a foreign country with a stable economy, in a sector and/or business that has a steady economic growth rate.
But while Jain sought to highlight the positives of investing abroad, Neilson Rose, equity asset manager at Mayberry Investments, said that there is still much value in investing locally and named the Jamaica Stock Exchange as an area of wise local investment.

"In 1991, the Stock Market index was just about 7,000 points, in 1992 the Stock Market index grew three-fold to 25,000 points. by 2004 the index grew to 112,000 points, so the Stock Market is certainly a good area we can invest in locally," he said.

Rose also listed the real estate sector and the services sector as good areas of possible investment.


Source: Jamaica Observer
http://www.jamaicaobserver.com/magazines/Business/html/20080819T230000-0500_139254_OBS_GLOBAL_DIVERSIFICATION_KEY_TO_BEATING_INFLATION__SAYS_MAYBERRY_DIRECTOR.asp