Jersey Investment Experts Mixed on 2003 Prospects

by Philip Morton, Investors Offshore.com

12 February 2003

According to a report in the Jersey Evening Post this week, investment experts on the Island are divided as to the future prospects for local and international stockmarkets, given the potential for a US-led war against Iraq.

The newspaper quoted Ashburton analyst, Peter Lucas as observing that: 'Although we must have a view as to how the story will unfold...there are other key questions that must be answered. What are the likely economic trends in the absence of war in Iraq? How much of the bad news is already priced into the markets? Where is the best value to be found?'

He concluded that there is likely to be a 'market-friendly outcome' to the current situation, and suggested that 2003 represents the 'light at the end of the tunnel' for investors.

However, speaking at a recent investment management seminar, James Smith of Catapult Research predicted a more gloomy year ahead, according to the JEP.

Expressing concern that President Bush may 'open a can of worms' if he acts against Iraq, Mr Smith observed that: 'Terrorism is not going away and we have to live with it.'

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