BRITAINS DISASTROUS PENSIONS INDUSTRY

In the aftermath of the 1929 Wall Street crash resulting in the crushing of faith in equity investment the financial community reverted to an almost total Bond allocation strategy with equities taking a back seat which lasted until the 1970's. As always the financial services industry got it totally wrong having ignored the remarkable equity opportunities in the 1930's. The 'Dow' rose by 382% from a low of 40.56 in 1932 to a high of 195.59 in 1937. This was one of the great investment opportunities of the century but of course as always the sophisticated big boys got it totally wrong…W.D. Gann didn't and we won't when history repeats in the next few years. The establishment went its merry way advising heavy Bond investment over the next few decades. This in the longer term was disastrous as inflation eventually took hold.

In the '70's I was close to a neighbour and advisor to an heir of the David Brown (Aston Martin) fortune. He had been advised by his solicitors to place his fairly substantial fortune in the Bond markets. As time went by and inflation stole his purchasing power he found his income falling dramatically until finally late in his life for the first time he was required to find work. It was a pitiful sight to see an old man with unsteady hands working in a china shop! He didn't last long at the shop or in life. The appalling advice he received certainly didn't contribute to a contented last few years. His experience left an indelible effect on my view of the importance of pension planning in all it's aspects especially as regards the investment management element.

At the time of his demise I had developed a nationwide financial services company specializing in pension arrangements for small to medium sized companies with offices nationwide. During my working life in this area I have been appalled by the actions of the financial services industry, the regulators and the politicians in the systematic destruction of the nation's savings.

The sad part is that matters are getting worse, much much worse as that monster of a man, Gordon Brown, has and still is in the process of reducing the British people to penury. In the immediate future Britain's productive workers will continue to suffer with the people working outside the public sector eventually suffering in an almost incalculable and unimaginable way. The cost of the public sector pension provisions is already getting totally out of hand and will eventually blow up even in their faces. Make no mistake about it Britain is in the process of suffering from the world's biggest 'Ponsi' scheme which will make Madoff look like an amateur. You find this hard to believe? All will be explained in our forthcoming special Pension seminar and subsequent seminars subject to sufficient demand.

However, not to despair, there are ways to not only mitigate the effects which will be felt by almost all the population. It will be possible to turn this tide of destruction into a feast of special advantage. Our seminars will disclose from history and our 55 years in the financial services industry extraordinary opportunities to overcome any forthcoming disasters. A true knowledge of how markets really work will provide peace and security. It is helpful to bear in mind that through our fund switching of institutional pensions. Our Pension clients have experienced consistent growth between their 6 monthly pension valuations since 1997. This at a time of wild market swings when most company pensions have foundered and the majority sank without trace. Makes me think we must have something really special to offer to any company or individual who wants to avoid the future maelstrom.

Regards,

Fred Stafford