Another year is upon us!

By Raoul Ruiz Martinez [email protected]

Raoul Ruiz Martinez is a consultant for Finesco Financial Services Ltd., Glasgow and regulated to advise on capital investments in both the UK and throughout Europe under the MiFID regulation.

What a year! Financial problems countinue and with just a month to go, European Union finance ministers have finally signed off on a bailout package for Ireland. 2010 has not seen the permanent disappearance of financial turmoil.

In this latest package, EU countries and the International Monetary Fund will provide up to €85bn in total, which may be drawn down over a period of up to seven-and-a-half years.

The powers-that-be also approved the outlines of a new permanent mechanism for dealing with debt rises in the Eurozone in a bid to head off further contagion affecting borrowing for Portugal and Spain (although the Spanish statistics look less favourable than the Portuguese as candidates for hand-outs).

Is it any wonder that we all keep on asking ourselves the same question: “When will this come to an end?” Maybe we should all ask: “When will it change for the better?” Factually no-one truly knows.

A large proportion of journalists appear to also have a hand in swaying the opinion of the general public with their half-baked truths and leniency towards speculative press releases. Who really is in charge here?

You are (or you should be). The world of investments is not simply tied to the Eurozone.

Take a look at yourself and your investment assets. Have they collapsed or not since the markets have grown after 2008/09?

I would like to suggest rationale and that you don’t lose perspective. It has always been proven that where there are difficulties and challenges, therein will lie opportunities!

If you’re invested in the markets, you can’t help but feel the bumps which have been the most consistent aspect of return this year.

For most, this has to be to do with rolling up the sleeves and getting one’s hand dirty. In hindsight, this has been a very challenging but, where achievable, a rewarding year for investors who have not just left all of their capital on deposit.

Getting started has to be the biggest challenge for investors. Being armed with as much relevant information is the key to your success.

If you are fearful of either changing your cash investment or sorting out the old “bric-a-brac” of investments from times past, remember the best knowledge of your personal position will determine whether to stick or play your hand.

Picture yourself sitting in a warm and comfortable chair, reading your favourite book, watching your favourite movie or drifting off into a light sleep.

However, you just can’t quite get comfortable because you have this doubt which is more of a worry that by doing nothing in your financial position…well, you just don’t know what it may mean. Take action and take control.

While investors out there will agree this is not a straightforward path to take, we are all certain of one thing in that it can be hugely rewarding.

2010 is ending and I for one look forward with anticipation to experiencing the next undoubtedly event-packed year.

What I would like to offer is a little logic and cohesion to the ever changing financial world of investments and, while cash remains less attractive for most, I look forward to providing you with some opinion and ideas in a constructive series of articles with the Algarve Resident I am planning for next year. Watch this space!

I would like to be one of the first to wish the Algarve Resident and all of its loyal readers a very Merry Christmas and a Prosperous New Year!

This article is intended to provide a general review of certain topics and its purpose is to inform

NOT to recommend or support any specific investments or course of action. 

Raoul has a regular feature (Raoul’s Rant) on the Owen Gee Solid Gold Sunday morning show on KissFM Algarve every two weeks with the final show for 2010 scheduled for December 19.

Raoul Ruiz can be contacted at the offices of euroFINESCOs.a. either by telephone on 289 561 333 or on email [email protected]