Ever wonder how financial advisers make money during times when their profession is not profitable? A new survey came out and the results are surprising. There has been a shift in philosophies regarding investment methods.
The main shift is an emerging industry that investors worldwide have grabbed hold of by the millions. This is Internet gaming. With the use of new software, traders can now scan prices globally in seconds and uncover risk-free betting opportunities which provide guaranteed returns of as much as 12% per month.
In an interview, City trader Rajeev Shah, the author of ‘Sports-Arbitrage – How To Place Riskless Bets & Create Tax-Free Investments’ explained that sports arbitrage occurs when different bookmakers’ prices on the same events overlap. In these cases, it is possible to bet on all of the outcomes in that event in such a way as to be guaranteed a total return which is greater than the total outlay. The mathematics are formula behind sports arbitrage trading are precise & the resultant profits are free of all risk.
“What we can do now, we could not have done ten years ago.”
Using software like such as ArbAlarm, ordinary people can now easily profit from this unique method of investment. Aware of this trend, the UK Treasury announced that the profits made from sports arbitrage tradingwill continue to remain free of all tax. This includes income tax and capital gains tax on all profits.
The reason economic advisers have lost so much money is due to the failing economy. The loss of faith in this profession has hurt it profitability. Their credibility has been tarnished for indecision. That seems to have changed. Now, for a bunch often attacked for sitting on the fence, this time the consensus is clear: the UK economy is deteriorating, and quickly.
The latest survey from the Royal Institution of Chartered Surveyors (RICS) shows that demand for commercial property last quarter tumbled at the fastest pace in a decade, with retail and London office space hit particularly hard. House prices – the anchor for much of the country’s prosperity over the last decade – fell a further 1.8pc this month.
“There are no positives out there right now,” said Simon Rubinsohn, the RICS’s chief economist.
With house prices heading south and the cost of living rising, consumers are quickening their retreat from the shopping tills and their credit cards. The retrenchment on the high street will be underlined by figures that are forecast to show a 2.6pc drop in retail sales for last month as discretionary spending is slashed. The sharp slowdown witnessed in the previous quarter has also produced a rapid reversal in experts’ expectations for where interest rates are heading. Money markets and many economists now believe the Bank’s Monetary Policy Committee will reduce rates to below 5pc as a full-blown recession replaces inflation as the dominant threat.
Finding a consensus among economists on when Governor Mervyn King and his colleagues at the rest of the MPC may be able to deliver a cut and what the rest of the year holds for the economy is much harder.
Experts say the outlook for jobs and wages that now holds the key to how rapidly the MPC will provide some firepower to an economy moving closer to recession.
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