Let’s be frank, UK economists, and heck, economists around the world, have something of a reputation for being very wishy washy. When you’re making predictions about something like the economy, in general, it’s actually a good idea to make someone broad predictions. Nobody has a magic crystal ball. All an economist can do is look at the numbers and make an educated guess. It may turn out to be true, and it may turn out to have been just that, a guess, but there’s never a one hundred percent guarantee that they’ll get it right. In other words, predicting the economy in the chaotic world of early twenty first century financing is a lot like predicting the weather. All we have to go on is what it “looks like might happen”.
And so, when economists across the board finally come off that fence and settle down, together, on one side or the other, it’s usually because they’re on to something. Very cautious about making predictions in anything but uncertain terms, today’s economists are now pretty much in agreement: The economy is in a sucky state of affairs.
There’s just no denying the words written on the wall anymore. The housing market is going nuts, gas prices are at incredible all time highs, there’s the credit crisis, inflation, and so on.
We may see the silver lining before too long, but the most conservative estimates place the financial woes we now face to last, at the very least, another year or two.
For this reason, it’s a good idea to take whatever disposable income you do have, while you still have it, and put it towards something smart, something that will pay off. If this means skipping your daily latte, so be it. Citizens of the UK and citizens of the US alike, we can’t really afford to keep blowing through our extra income, because the worst is yet to come, and we really do need to be prepared for that rainy day just on the horizon.
In the early 1990’s, real estate was a pretty safe bet, it looked like the market would only keep improving. The 1990’s have been over for awhile, though. In the early twenty first century, real estate isn’t the safety net it once was.
Rather, today’s investor is having to get a bit more creative, to come up with low risk solutions to investment worries. One such alternative would be the arbitrage trading industry, which the UK government is helping to support by promising no taxes charged for arbitrage based income.
Arbitrage consists of finding two bookmakers placing the odds in such a way that you can bet for one outcome with bookmaker A, and the other outcome with bookmaker B, without putting yourself at risk to lose any money. It sounds nuts, but it actually holds up. It’s only really made possible by the internet, where you can find bookmakers in any given area and place bets with them.
If you’re interested, look for ArbAlarm or similar software, which helps you to find and capitalize on these opportunities without having to scour the internet and check the odds yourself.
On the other hand, if you’re not so sure, check out “Sports-Arbitrage, How to Place Riskless Bets and Create Tax-Free Investments” by Rajeev Shah. “Sports-Arbitrage” should have all the information you need to make an informed decision and see if arbitrage is right for you.
Tags: UK News