Here's Why Now is a Good Time to Invest into UK Traded Endowment

Most people lose money when they invest. Thus, I've learned that to make money from investing, we cannot follow what most people are doing.  We need to be a "Contrarian", to go against the Herd.

Many people do not realise the concept of "Reversion to the Mean". What it means is that if something deviates too much from the "average", it is likely to move back to the Mean.  That's why in Financial Markets, after stock prices have been shooting up 200% to over 500% in the last 5 years, the "party" was ended by stock market Crash.

However, year 2008 proved to be one of the Worst Year for Stocks since 1937.  For many, this might be depressing news, for me, this is exciting News.

What it might mean is that year 2009 is likely to be a year that stocks bottom and stage some form of recovery. I especially like some of the markets that did very badly in year 2008. China stock market is one, it fell by the greatest margin in year 2008. Singapore stock market is another, it fell more than U.S. (source of all the financial troubles we experienced). 

I like China and Singapore because both of them have strong fundamentals, have little debt and will probably bounced back very fast when economies start to recover.

Looking at currencies, Sterling Pounds was one of the worst performer in year 2008. Again, I'm excited because of the possibility of "Reversion to the Mean". Thus, the chance for Sterling Pounds to recover is actually higher than for it to drop another 20%. 

Thus, this might be a very good Opportunity for anyone to invest into UK Traded Endowment, as you'll be buying sterling pounds on the cheap and also buying policies on the cheap, since the financial Crisis has caused many Traded Endowment policies to be priced very low.

With price low, what goes up is the level of Capital Guarantee, which can be over 100% Capital Guarantee (Cash Value of policy vs Policy Price) and the potential returns. For more information on UK Traded Endowment, you can email us at    This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Equities:
• MSCI World Index: -42.1% (worst yearly performance since start of Index in 1970)

  • S&P 500 Index: -38.5% (worst annual percentage decline since 1937 and 3rd worst on record; largest quarterly [4th quarter: -298] and daily [September 29: -107] points decline ever; 6th worst daily percentage decline [October 15: -9.0%])
  • Dow Jones Industrial Index: -33.8% (worst annual percentage decline since 1931 and 3rd worst on record; largest quarterly [4th quarter: -2,330] and daily [September 29: -778] points decline ever; 6th worst daily percentage decline [October 15: -7.9%])
  • S&P 500 and Dow Jones: There was no point in 2008 where the indices were up for the year at the close of a trading day. Since 1900, 2008 was only the 4th year (after 1910, 1962 and 1977) where the Dow never had a single day where it closed up for the year, according to Bespoke.
  • FTSE Eurofirst 300 Index: -44.8% (worst yearly percentage fall since its creation in 1986)
  • Nikkei 225 Average: -42.1% (biggest annual percentage decline on record)
  • CBOE Volatility Index (VIX): Historical high in November based on new calculation, but remained below levels seen during the 1987 crash based on an previous calculation.

Treasuries:
• US Treasuries: Yields dropped to lowest levels since 1950.

  • US 10-year Treasury Notes: Yields fell by 182 basis points - biggest yearly points decline since 1995 and the second biggest in the last 20 years.

Currencies:
• Japanese Trade-weighted Index: +25.0% (largest annual rise since currency was allowed to float freely in 1973)

  • Pound against US dollar: -26.2% (worst annual decline since gold standard was abandoned in 1971)
  • Pound against euro: -22.8% (worst yearly decline since launch of single currency in 1999)