World Sharemarkets shaken by debt problems in Dubai.
It has been developing for some years now. Ploughing billions of dollar into construction of fairytale tourist attractions. Dubai has seen construction of cities of highrises, exclusive residential communities in the shape of a "Map of the World" and a "Palm Tree" with no expense spared. Whilst their expansive oil rich nation has supposedly funded these developments it is now evident that Dubai's debt currently stands at $US60 billion and they can't pay the builders.
We may see another round of, "which Banks have exposure to this debt". It is likely that many US Banks will be facing the spotlight over the next week or so. We understand that in Australia there is very little exposure to our Banks.
With the US sharemarket closed for the Thanksgiving Weekend we may find a sharpe reaction to the news in the US early next week.
We have been waiting for a "left field" consequence of the Global Debt Crisis and this may be it.
We see some potential opportunity if a mini correction develops over the next few weeks.
We will keep you posted on strategies to be considered as developments become clearer.
Please contact our office should you have any questions.
Information contained in this document is General Advice and does not take into account any person's particular financial objectives, situation or particular needs. Before making a financial decision based on this advice you should consider, with or without the assistance of a financial adviser, whether it is appropriate to your particular financial needs, objectives and circumstances.
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