THE BUSINESS OF INVESTING; IF YOU ARE NO NOSTRADAMUS, THEN PUT YOUR EGGS IN DIFFERENT BASKETS...
The experts, who state that the global investors are looking for safe havens for themselves, point out that those who are interested in making investments in Turkey should not head towards a single source. Halit Soydan, Lecturer at Izmir University of Economics-Faculty of Business, and Former Managing Director of Yapı Kredi and Garanti Banks, made a warning to those who want to invest in Turkey by saying “do not put all your eggs in one basket”.
Soydan stated that global investors lost their trust, and they needed to make investment in multiple sources. He recalled the famous quote by John Connally, the United States Former Secretary of Treasury, ‘This is our currency, but it is your problem!’ in regard to Asia, sitting on $7 trillion reserve. Soydan said, “Connally makes a reference to dollar portfolios of Asian Central Banks. He says ‘if our currency lost/will lose value, it will be your problem’. So, the investors need to find a ‘safe haven’ for their investments. They will have to think over and over while making investment decisions. They will have to calculate the risk-return trade-off carefully. They will not put all their eggs in one basket.”
Opt for investment in real estate
Soydan suggested that investing in real estate was the best option in long term in Turkey. Soydan also stated that gold shimmer would not be reflecting for a while and the investors should not trust external savings. Soydan said, “The interests will first rise in USA, then in European Union. The reason for this is clear. The banks of these countries monetized and gave money away due to the 2008 Global Crisis and recession. Now they are talking about pulling the money back. As a summary, this is the fear of inflation.”
Soydan pointed out that the stock certificates market loved financial stability, and he compared tight liquidity to a tight jacket. Soydan made warnings to small investors, by saying, “Investing in derivatives over-the-counter or forward transactions requires expertise. Investing in other commodity, other than gold, requires four times the expertise.”
‘Live within your means’
Soydan stated that internal savings was necessity for investment and expansion, and said that today’s investors had to live within their means, and make their savings very carefully. Soydan said:
“Invest your savings in either bank, or investment funds, or bill of debts. Or buy stock certificates. You can even invest in lease certificates. Whatever you do, do not put all your eggs in one basket, invest in different things.”
