Wednesday, 5 October 2016
Not good enough to be true?
It is often said that if an investment looks too good to be true it probably is. I read in the report of the winding up of Lumiere Wealth that investors were being offered 14% return on their money from a couple of Brazilian investments. See http://jerseyeveningpost.com/news/2016/10/05/nvestors-face-losing-life-savings-in-lumiere-closure/ That may well sound too good to be true in the current low interest rate environment.
It is of course very sad that people have lost significant sums of money in the scheme . However it is not really fair to say the investors were being unrealistic in hoping for a 14% return. To add great insult to injury, the Brazilian stock market index has gone from 45,000 in October 2015 to around 60,000 today - a gain of 33%. See brazil stock-market