Forum Archive Index - December 2000

[Marilyn Munroe <who.c@res.co.nz>]

I reckon your advisers advise to invest in European Biotech was partly
correct.

Loose the biotech bit and consider Europe generally.

The Single European Market and the adoption of the Euro currency mean that big changes are under way in the European market. Service firms such as banks will be able to sell the same products all over Europe and the price differentials in products such as cars which previously existed between countries will be viciously arbitraged by by border crossing consumers.

This has set off a wave of mergers and takeovers as European companies reposition themselves for this new environment.

The above coupled with changes to German tax laws preventing the German Tax Office holding out its hand for some capital gains tax when takeovers occur are likely provide a lively investment environment.

The trouble for you and me is trying to keep up with the action, and beating others to the punch from the antipodes.

I am unable to make specific recommendations for reasons stated above. I hope you find this a useful bit of background.

Of course the most beneficial European event for New Zealand investors would be for European tax payers to wake up to the fact that it is crazy to subsidize European farmers to produce food that can kill you.

Boop-boop-de-do Marilyn

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