Daily Personal Finance Insights – Invest in Equities

Daily Personal Finance Insights – Invest in Equities
28 February 2013

2013 Year of Equities – but use rational temperance

Some experts, speaking at the Global Financial Markets Forum in Abu Dhabi, have indicated that 2013 will be a year of equities as the macro-economic condition in the world in general is improving and the economic growth in the UAE in particular has reached new zeniths since 2011.

This is in line with Bill Gross of PIMCO, the world’s largest bond trader, who indicated the returns on bonds are so low going forward, equities will come out on top for investment returns.  But tread cautiously and seek out stocks that pay dividends. Investors would do well to adhere to Bill Gross’s advice as stock prices are starting to nudge up to exuberant levels, we are therefore well advised to use rational temperance when investing: “On a scale of 1-10 measuring asset price ‘irrationality,’ we are probably at a 6 and moving in an upward direction.”

Personal loans for consumption purposes increases

Individual personal loans for consumption purposes in the UAE have grown exponentially over the last 6 years, according to the latest statistics released by the Central Bank:

Personal Loans for Consumption Purposes (In Millions of AEDs)

Dec 2006

Dec 2007

Dec 2008

Dec 2009

Dec 2010

Dec 2011

Jul

2012

Aug 2012

Sept 2012

Oct 2012

28,824

41,923

67,039

66,561

65,172

69,141

78,546

79,025

79,681

80,492

Personal loans for business purposes amounted to Dhs 180,440 million at the end of October 2012, which had more than doubled compared to Dhs 81,130 million at the end of 2006. But this figure was slightly down on personal loans for business purposes at the end of 2011 and earlier in 2012 which averaged Dhs 183,000 million. 

Online job postings up in the UAE

Online job postings were up in the UAE by 23% according to the ‘Monster Employment Index’, based on real-time reviews of tens of thousands of job opportunities culled from a large representative selection of career web-sites and online job listings.

Best Islamic Bank

Abu Dhabi Islamic Bank (ADIB) has been named the “Best Overall Islamic Bank in the World” by Islamic Finance News (IFN). The bank also won the “Best Islamic Bank in the UAE” for the third consecutive year, and “Best Global Islamic Retail Bank.”

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Author
Head of Behavioral Finance
cashy
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