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Here's your chance to win R50 000EVER thought of investing R100 000 offshore but you don't have the cash or the stomach for it? Now is your chance to become an international investor with the BT Money Barclays Offshore Challenge. The competition, which offers free entry and runs for a month, carries a winner's prize of R50 000.
Among the best offshore performers have been the continental European markets, with gains of 10% or more in dollar terms so far this year. The US market has lagged its European counterparts, falling 0.8% up to September 30. The biggest laggards among the developed markets have been Canada, Japan and Australia. In the volatile world of emerging markets, it is cold comfort that SA has not been the worst hit, but it is still down nearly 32% in dollar terms this year. Russia has fallen 95% and Argentina, the emerging market index included for the Americas in our competition, is down 45% so far this year. In Asia, Hong Kong has fallen 27%, Malaysia 36% and Singapore 39%. The competition is simple, and runs along the same lines as fantasy sports games that have become so popular. You will be given an imaginary R100 000 budget which you must invest in units of R10 000 each. You have a choice of 15 stock exchanges in which to invest, split evenly between the Americas, Europe and Africa, and Asia. You must invest in at least two indices from each category, and no more than two units in each index. You do have the option of keeping at most 20% of your portfolio at home by investing in the JSE all-share index. The top performances will be announced weekly in Money and the winner will be the entrant with the highest rand return in a month.
In the week to September 30, most Asian markets rallied. American markets fell on disappointment that the Federal Reserve's interest-rate cut was so small. Because the returns are all recalculated into rand, you should consider the potential not only of the stock markets involved but the likely strength of currencies when making your selections. You will have only one chance to change your selections (after the first two weeks). By Friday afternoon the dollar was reeling in Europe amid growing speculation that the Federal Reserve may have to cut US interest rate further to stem global market turmoil. The dollar fell over 1% from Thursday to test a fresh 19-month low against the mark in morning trade, amid growing concerns over US vulnerability to the market turmoil. "The dollar has been undermined because people feel the US stock market is the most vulnerable and its weakness could have the greatest economic effect," Robert Hayward, economic adviser at Bank of America in London, told Reuters. European stocks were also under pressure following another round of losses in US and Asian shares on Thursday and early Friday. Among the key events likely to affect markets are the G7 finance ministers meeting in Washington this weekend and the International Monetary Fund and World Bank annual meetings in the same town later in the week. The US is putting pressure on other leading economies to do their part to stabilise the global financial system. Treasury Secretary Robert Rubin and his deputy Lawrence Summers have made it clear they expect their counterparts in Europe and Asia to help calm growing market fears of a sharp global economic downturn. There are mounting doubts whether anybody will follow Fed chairman Alan Greenspan's example of an interest rate cut. European central bankers have made it clear they see no need for a rate cut in their economies, which are just emerging from a long slump. Rates in Japan, stuck in its worst recession since the Second World War, are already at rock-bottom.
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