well...i have a turkish lira time deposit elma account at garanti bank. over the past 4 years i have gotten between 16 and 20 % gross. my last interest rate january 2009 was 19.50%. this month february it is down to 13%....a drop of 6 points in one month.
now..as we all know the central bank cut the base rate by two points...and i was expecting a 2 point drop or so...but 6 points???
i contacted the bank and they said basically ..' thats the new reality baby'...
and all the banks are doing the same...
and to expect more cuts next month..
is this,indeed, the new reality?
or is the extent of the cuts determined by each bank indepentantly?
any insights would be appreciated

Dear Lenore,

Unfortunately fixed interest rates are not anymore a preferable investment instrument. Now the treasury rates are around 8%.

Instead you can diversificate your portfolio with funds. The A type funds can be favourable in this period as the İMKB 100 is getting higher comapring the other instruments. Those funds are indexed to İMKB as you can guess.

Another option is playing on F/X or stocks if you can take few risks.

We as Global Resolutions will be delighted to asist you with our genuine investment consultancy and trading services. In this context we provide usual and comprehensive technical analysis services. You can take a look at our website http://www.globalresolutions.net/ about having general information about our services. Also you can reach us by email getting detailed information.

We are looking forward to hear from you.

Wish success in your investments..

Dear Ozgur,

If you would like to show the directions for investments , you should also decribe possible risks as well.

IMKB 100 funds is attractive nowadays but dont forget IMKB has fall down abt 8 pct with in one week time.

And I dont want to explanin IMKB 100 Index situation on March 2009.

Ok . Take risk make money. But we need to know the possible risks . Can you measure risks. or can your guarantee principal invested amount.

Thanks

Hi,

You are completely right. İMKB 100 holds a little risk comparing other instruments. However if you evaluate the index change from the beginning of 2009 and at the end, you can easily see that there is almost twice value increase.

We usually advice to hold on position for at least 1-2 weeks. The shorter time led you invest, always the more risk you will take. Also in technical analysis no one can guarantee principal money due to its nature. But we minimize loss and maximize profit in definite borders.

Replying you in details, yes we can measure the risk amount taken in our detailed technical analysis services. In those works we strenghten our technical analysis with econometric time series analysis. We can show you the volatility of price of the instrument (an İMKB stock or F/X etc) and can measure risk amount.

We can send sample comment paper upon request. You can always reach us by email.

Regards,
Ozgur