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Invest in Productive Assets – Research by Enquirica<br />October 7, 2010 Calgary<br />Hedge fund manager Kyle Bass of Hayman Capital at the recent Barefoot Economic Summit recommended avoiding equities entirely.  He made the comparison to the stock market in Zimbabwe where unlimited monetary expansion has been practiced for years - “Zimbabwe was the best performing stock market in nominal terms over the last decade, yet you were wiped out in real terms”.  With the events that are unfolding in monetary policy in the developed world and with further QE to come, Bass prefers investing in productive assets as a hedge against inflation.    <br />Enquirica has the same view with one additional condition - invest in cash-flow positive production assets in politically stable regions of the world.  Political risk is a key return determinant when investing in commodities – see the expropriations of energy assets in Russia and potentially of farmland in Brazil. <br />Over the long term research shows that you capture the value of the raising commodity prices with less volatility as they are ultimately capitalized in the value of the production assets.    In the interim you are holding a cash-generating asset.  <br />Enquirica Research is a Calgary based firm focusing on independent analysis of alternative asset classes and investment opportunities in exempt market securities that target investments in western Canada.  For copies of Enquirica research register at www.enquirica.com.<br />DISCLAIMER:  The opinions, estimates, projections and other information which is contained herein and derived from or attributable to persons other than ENQUIRICA is neither endorsed nor adopted by ENQUIRICA – it is presented for informational purposes only.  Further, the opinions, estimates, projections and other information contained herein are not intended and are not to be construed as an offer to sell, or a solicitation to buy any securities, including any exempt market securities, nor shall such opinions, estimates, projections and other information be considered as investment advice or as a recommendation of any exempt market dealer or as a recommendation to enter into any transaction. <br />FORWARD-LOOKING INFORMATION: This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words quot;
anticipatequot;
, quot;
expectquot;
, quot;
mayquot;
, quot;
shouldquot;
, quot;
estimatequot;
, quot;
projectquot;
, quot;
outlookquot;
, quot;
forecastquot;
 or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by ENQUIRICA, if any, reflect ENQUIRICA’s beliefs and assumptions based on information available at the time the statements were made.  Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material.   Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. ENQUIRICA undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.<br />For further information please contact: <br />Enquirica Research Inc. - “independent analysis of alternative asset classes and opportunities in exempt market securities”<br />Email: enquiries@enquirica.com<br />Web:  www.enquirica.com<br /> <br />
Enquirica Research - Invest in Productive Assets October 7 2010

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Enquirica Research - Invest in Productive Assets October 7 2010

  • 1. Invest in Productive Assets – Research by Enquirica<br />October 7, 2010 Calgary<br />Hedge fund manager Kyle Bass of Hayman Capital at the recent Barefoot Economic Summit recommended avoiding equities entirely. He made the comparison to the stock market in Zimbabwe where unlimited monetary expansion has been practiced for years - “Zimbabwe was the best performing stock market in nominal terms over the last decade, yet you were wiped out in real terms”. With the events that are unfolding in monetary policy in the developed world and with further QE to come, Bass prefers investing in productive assets as a hedge against inflation. <br />Enquirica has the same view with one additional condition - invest in cash-flow positive production assets in politically stable regions of the world. Political risk is a key return determinant when investing in commodities – see the expropriations of energy assets in Russia and potentially of farmland in Brazil. <br />Over the long term research shows that you capture the value of the raising commodity prices with less volatility as they are ultimately capitalized in the value of the production assets.  In the interim you are holding a cash-generating asset. <br />Enquirica Research is a Calgary based firm focusing on independent analysis of alternative asset classes and investment opportunities in exempt market securities that target investments in western Canada. For copies of Enquirica research register at www.enquirica.com.<br />DISCLAIMER: The opinions, estimates, projections and other information which is contained herein and derived from or attributable to persons other than ENQUIRICA is neither endorsed nor adopted by ENQUIRICA – it is presented for informational purposes only. Further, the opinions, estimates, projections and other information contained herein are not intended and are not to be construed as an offer to sell, or a solicitation to buy any securities, including any exempt market securities, nor shall such opinions, estimates, projections and other information be considered as investment advice or as a recommendation of any exempt market dealer or as a recommendation to enter into any transaction. <br />FORWARD-LOOKING INFORMATION: This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words quot; anticipatequot; , quot; expectquot; , quot; mayquot; , quot; shouldquot; , quot; estimatequot; , quot; projectquot; , quot; outlookquot; , quot; forecastquot; or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by ENQUIRICA, if any, reflect ENQUIRICA’s beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. ENQUIRICA undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.<br />For further information please contact: <br />Enquirica Research Inc. - “independent analysis of alternative asset classes and opportunities in exempt market securities”<br />Email: enquiries@enquirica.com<br />Web: www.enquirica.com<br /> <br />