January 3rd 2012 Market Bulletin

Follow the link to the Market Bulletin 03 January 2012 for this week’s Bulletin which contains the following points:

2011 is probably a year most investors wish to forget; one which witnessed high volatility amidst the eurozone sovereign debt crisis and left global markets suffering from crisis fatigue.
However not all asset classes suffered – high quality government bonds did very well and not all equity markets fell. The Dow Jones index of super blue-chip US companies actually ended the year higher. Anyone investing in a balanced portfolio with an income bias would have most likely been surprised on the upside.
With the eurozone crisis unresolved there will, almost without doubt, be continued uncertainty this year and we mull over some of the most likely questions investors may be concerned about. Despite continued uncertainty, for those investors taking a pragmatic approach there are positive solutions in the form of diverse portfolios which can offer investors some degree of confidence in the year ahead.
To start the New Year, a number of our managers give their views on the outlook for equity markets.

Regards

Neil Gubbins
ST. JAMES’S PLACE
WEALTH MANAGEMENT
11 Hamilton Place
Mayfair
London W1J 7DA
T: 020 7495 1771
M: 07739 263334
www.sjpp.co.uk/neilgubbins

Meeting at Karma – Business Law Update – 22nd October

Daniel and Jennifer from Lex Consilium will be at Karma’s on the Jesus Pobre Road from Javea at 7:45pm on Thursday night.

Not only do they have some important updates to bring us, but this is our first meeting ourstide of Javea – so please come along and support this new venture

Gaile

Employment news

Had an excellent discussion on Thursday night at the Club meeting at Marples in Javea. Led by our guest Daniel Herrantz from Lex Consilium, Oliva, we received some interesting updates on changes likely to take place at the beginning of the next tax year… including a proposal to substantially increase Autonomo contributions ( currently being considered ) !

Our next meeting will be at Artisano, Avda de la Fontana, Javea, in the evening of the 8th October (Thursday) – please get in touch with me for more info manager@mabc.biz

63% Workers in Spain are on less than €1100

The average salary in Spain is €18k – but 63% of salaried workers earn less than €1,100 monthly http://www.typicallyspanish.com/news/publish/article_22813.shtml meaning there is a huge dichotomy between high earners and low income groups. The cost of living, on essentials, is gradually going down – but is that a symptom of a dying economy and desparate closing down sales, rather than a rationalisation of post Euro inflated prices? 75% of professionals and self-employed also earn below €1,100 – Is your expection of income here being met by your actual earnings? The cost of being autonomo therefore represents around 25% or more of the majority of autonomo earnings.

If, as expected, tourist areas are maintaining visitor rates on the strength of Spanish residents holidaying in Spain rather than going abroad – are tourist shops and related businesses shifting their produce to reflect the interests of the indiginous population? A silly example – on Monday, the small market area beneath the Bullring in Valencia was fully stocked with flamenco skirts, dolls and English sloganned t shirts – but the only stalls doing reasonable trade were the craft and jewellery related stalls selling regionally sourced specialities…