I spent this morning with John Fearon who is in Cape Town for a few weeks from Oman, before he heads to London.
We had a great conversation about the global economy and both agree that the property market worldwide is set to come down hard, along with the stock market when taking a 2 year view.
John told me about the Middle East currency’s breaking away from the US Dollar, and free floating - I had no idea they were currently pegged. When this happens in the next year, it means that oil contracts will be negotiated in a consolidated Middle East currency (according to John, this has all been agreed already, and will be the same as Europe has done with the Euro) rather than dollars as is currently the case.
John also believes strongly that the Japanese Yen is undervalued by at least 20%. I’ll be watching global interest rates with an eagle eye in the short term.
I’ve set up a YouTube account for short video clips. Here’s one of us messing around in John’s spot in Camps Bay after an intense conversation. (that stainless steel box is a LIFT which takes you up and down instead of walking!!)
If you can’t see it above, click here…
2 responses so far ↓
1 John // Jun 24, 2007 at 6:36 pm
Hey Eric,
Great seeing you today. It’s Oman by the way not Iman.
Look forward to seeing you on Wednesday at the 27 thingie.
2 Eric // Jun 24, 2007 at 6:43 pm
Tx J. Fixed. See u Wednesday…
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