Good time to invest, says business exec
Published:Monday | December 12, 2011 | 12:00 AM
Carl Gilchrist, Gleaner Writer
OCHO RIOS, St Ann:
OPPORTUNITIES ABOUND for moderate and higher-risk investors. That's the word from Merrick Plummer, research manager, PanCaribbean Financial Services (PCFS).
Speaking at the Investment Outlook briefing at The Jewel Dunn's River Beach Resort and Spa in Ocho Rios, St Ann, last Thursday, Plummer said the mix of current local and international economic factors have combined to create good investment options in stocks and bonds. The event is the first in a series of islandwide briefings.
Speaking to a full house of current and potential clients, Plummer noted that investors are in a wait-and-see mode with developments relating to pending elections, the International Monetary Fund agreement, negative rating actions and the threat of further fallout in Europe.
With high reserve levels facilitating a relatively stable exchange and interest rates continuing to trend down, he pointed to variable-rate and corporate bonds, unit trusts and blue chip stocks as strong options for low to moderate-risk investors. Government paper and emerging stars in the junior stock market were also highlighted as good medium to long-term choices for maximum returns. Investors with a higher risk appetite were encouraged to look to international emerging markets and explore real-estate options, once they have the relevant information and are prepared to stay invested.
Plummer said factors such as the debt crisis in Europe and the slowdown in global economies has increased the level of uncertainty, resulting in undervalued assets. However, he noted that world leaders and multilateral agencies have demonstrated their commitment to resolving the current issues and implement measures to boost growth.
Discipline key
This environment is likely to yield several investment opportunities in international stocks, bonds and commodities. He made the point that with the proper information and guidance, challenges can be transformed into opportunities and long-term rewards, noting that discipline is key to a good investment strategy.
PanCaribbean's credit rating was reaffirmed A+ by CariCRIS, the Caribbean's regional credit rating agency. PCFS was awarded the prestigious Governor General's Award for Excellence by the Jamaica Stock Exchange for 2010 for the third year and the Investor's Choice Champion Company Award 2010. The company is a member of the Sagicor Group and the Jamaica Stock Exchange.