Fear of inflation will return to the markets of Zurich, 29.11.2010. Although we are still far from hyper-inflation like in the 20s of the 20th century, but experts now predict an increase in the average rate of inflation for the next ten years in Germany by 1.7 percent. Previously, there were only 1.3 percent and this is certainly not the last adaptation,”Klaus-Peter thinks cherry, head of private wealth management at the Zurich-based ThomasLloyd group. The innovative finance counters therefore for some years with a smart bond which secures the capital and adapts itself to the development of inflation. The DuoZins bond is basically linked to the general development of inflation”, describes ThomasLloyd Board cherry the principle. The redemption price is the total principal amount plus an inflation compensation, but at least 107.5 percent of this total nominal value at the end of the term. In the final payment”of ThomasLloyd DuoZins bond is also for investors The premium to be paid initially contain refund.
Which is why the Swiss financial company that offers its products in Germany and Austria, it is at the right time in the right place, facing experts on three early-warning indicators: the first reason is the surprisingly strong economic performance of the Federal Republic of Germany. Economists see in this country this year by 3.5 percent and for next year at least by two percent. Despite these positive developments, the European Central Bank (ECB) makes no move to adjust its monetary policy and to create more room for refinancing. Ultimately is added as the third reason, that its American counterpart the Federal Reserve (fed) the United States with capital literally flooded. So, analysts at Goldman Sachs expect that the fed in this way will pump more than $2 trillion in the market.
As another indicator, the experts also see the rise in raw material prices. Every investor can calculate quickly the impact”, explains Cherry and attracts a simple example: who currently invests his money in a German Government loan, receives 2.5 percent with a maturity of at least ten years just once. Currently some over one percent consumer prices accelerate it on two or three, not only the interest income are gone, but he is also less out. This can be but not useful”, so the ThomasLloyd financial expert. Of ThomasLloyd DuoZins loan offers, however, the opportunity to combine the security and predictability of a fixed-income investment with the yield potential of a floating rate financial investment and thus achieving optimal interest income in any market situation capital protection and interest balance including. As the interest rate will be a 1.5 per cent (for the ten-year period) or a higher interest rate one percent (for five years) granted, as the so-called ECB interest rate so the interest rate at which banks in Germany even refinance. The minimum interest rate (floor) of the ThomasLloyd DuoZins bond is Depending on the runtime up to 4.5 percent per year.