Our content this month are as follows:-

• Market News Roundup
• What the Papers Say
• Books We Have Read
• Client Feature
• Quote of the Month

Markets around the world remain volatile and sensitive to bad news. Although it looks as though the worst of the banking crisis is behind us the recent volatility has been as a result of the acknowledgement of an impending recession. While recession seems inevitable it is worth remembering that there is always some good news: -

•At times like this, the demand for risky assets decreases and so the additional return for taking the risk needs to be higher in order to attract investors; this simply means that expected returns are now higher.

•Markets move more quickly than economies and most of the bad news is already in prices. Markets are often ready to move on when we least expect it.

•Unless you have sold investments your losses are paper losses. Sit tight to take advantage of the recovery when it happens.

We have quoted Merryn Somerset Webb in the Financial Times on a few occasions this year and make no apology for doing so again. In an article on 18th October, entitled "Handcuffed together" she discusses some of the "alternative" asset classes and their performance currently. She makes the point that hedge funds, private equity and commodities, far from being diversifiers of equities, appear to be very much correlated with them. Indeed, they appear to be performing far worse. She makes the point that in falling world markets there is only one true diversifier and that is high-quality bonds, although she calls this an old-fashioned thing to do, hopefully tongue in cheek. It seems that she is one of the first to acknowledge that a portfolio built upon market returns and a percentage of high-quality bonds to reduce risk in volatile times is the only sensible approach and we are pleased to acknowledge her endorsement.

At the other end of the scale there is the Sunday Times of 28th September in which Jennifer Hill kindly tipped us off on "How the wealthy are beating the turmoil". She further piques our interest with a sub heading of "The rich are getting returns of 10% and you can too". Here is what she recommends: -

Lloyd's of London. Anyone who remembers what happened to Lloyd's names in the 80s and 90s might have their reservations about this, particularly if they caught sight of the Telegraph headline from 21st October, "Lloyd's insurers face higher claims from hurricane season". Whilst there is now limited liability, there can be calls on assets and most will consider this to be far too risky.

Traded Endowments. We have helped many clients to sell with profits endowment policies, but never to buy. Any investment that is controlled by the hand of an unseen actuary and where the total costs are hard to discover will never be for us. And unfortunately for Jennifer Hill, the Telegraph headline on 22nd October was, "Up to 8 million savers see nest eggs cut by thousands by with profits firms". In a world of falling bonus rates and recently reintroduced market value reductions would you really want to buy an endowment policy?

Traded Life Policies. These funds buy the life assurance policies of terminally ill Americans and are enjoying something of a resurgence. The major problem they have is that while death is certain, medicine is always coming up with ways of keeping people alive longer - you do not have to think back very far to a time when a diagnosis of AIDS was considered a short-term death sentence whereas now it can be successfully managed for many years.

Social Lending. These websites bring together those who want to borrow money with potential lenders. A quick browse of the website Jennifer Hill recommends, Zopa.com, reveals that the average loan is just over £30, that most of the borrowers want to "consolidate existing debts" and that your money may wait a long time to be lent. I am not sure that many of us would want to lend to people who come to a website rather than a bank, particularly under current circumstances, but you never know.

I somehow doubt that the wealthy are even considering beating the current turmoil with any of these marginal investments but the papers have the space to fill and fill it they will.

This month's recommendation is “Quirkology" by Richard Wiseman. We believe it came out of a television series although we have never seen it. The subtitle of the book is "The Curious Science of Everyday Lives ". This is a fascinating book which answers many questions you may have asked and some you might never have thought of including, can you really spot a liar through body language? Can good looks keep you out of jail? How honest are we - really? Does your surname influence your choice of job? When we bump into that old acquaintance we have just been thinking about, how big a coincidence is it?

If you like quirky facts and reading about what really makes us tick you will enjoy this book. It is available from good bookstores and Amazon, but if you have any difficulty finding it please contact vickie@indexwm.co.uk.

“YOUR GARDEN IS OUR INSPIRATION”

Since our foundation in 1991 efg Europe have established a growing reputation, thanks mainly to our work in both the exhibition and major event business. From humble beginnings supplying simple potted containers to exhibition stands, efg Europe has grown and evolved into a multi faceted group with a dedicated event management division (Prestige), stand build, design and dressing division (Expo Flora) and a permanent interior and exterior landscaping division (Eden). The drive for growth has always been customer demand related, proving that the blend of creativity, client focused relations and excellent delivery offered by efg Europe are the core values which have lead to our success.

Efg Europe are proud to be associated with events such as the Ryder Cup, Wimbledon, Artois Tennis Championship, Ascot and a client list that stretches from Land Rover to the Emirates Stadium.

Efg Eden was established to specialise in permanent landscaping solutions for both interior and exterior projects. For many clients the simplicity of having your project managed by a dedicated key account manager is instrumental in deciding to work with efg. From concept through to completion efg Eden’s sales and project manager Emma Jones will guide and advise the client on a one to one basis.

Trained as a horticulturist at the National Botanical Gardens, Glasnevin, Dublin, Emma has been running efg Eden for the past two years. Prior to joining efg Emma worked as the manager of a leading interior landscaping firm in Dublin, and has trained at Tresco Abbey Garden in the Isles of Scilly, and Fondazione Minoprio, Como, Italy.

When Mike and Jane Stearn of Cleobury Mortimer approached efg Eden wanting to have their garden landscaped, Emma was ready to bring together all of the necessary skills to bring Mike and Jane’s ideas and dream garden to life.

The design process began with initial discussion, through to mood boards, initial designs, budgets, then final plans and consultations. Frequent meetings between client, project manager and designer, ensured a smooth flow of ideas and suggestions. Both Mike and Jane are keen gardeners and both were actively involved in checking and approving designs and planting lists. Phase one, the front garden of the property was completed in September 2007.

Through establishing the company’s cornerstone values of delivering all aspects of an inspirational product on time and within budget, Charlie has seen his company grown from strength to strength. As time grew short on the very tight deadline of the build (only seven days from arrival on site to completion) Charlie rolled up his sleeves and worked alongside his installation crew, this hands on approach is very much part of the ethos of this niche company delivering big ideas.

Such was the success of the Ideal Home exhibition 2008, efg Eden were thrilled to be once again invited to tender for the design, build and installation at the Ideal Home exhibition for March 2009.

Whether you are the owner of a three acre garden or a modest flat roof, efg Eden can consult and advise, helping you to create the perfect space for your lifestyle. From inspiration through to realisation your garden becomes our dedicated focus.

Contact: Emma Jones
01789 470847
emma.jones@efg-europe.com
www.efg-europe.com

"You cannot build a reputation on what you are going to do."
Henry Ford

"Inspiration is for amateurs. The rest of us just show up for work."
Chuck Close, Artist