FRIDAY NOVEMBER 27, 2009

The world is still a dangerous place

While America was busy eating turkey, Dubai World announced that it might default on $60-80 billion in debt!  This announcement sent shock waves throughout the investment world, with foreign markets declining by 3% on Thanksgiving day.  Even oil rich sovereign funds like Dubai World can falter under too much leverage.  It will bring much greater scrutiny to the credit markets, particularly other sovereign funds and governments bonds.

This situation will be closely monitored over the weekend.  The world is still a dangerous place.  Maybe investing in the U.S. markets isn't such a dumb thing after all!

POSTED AT 1899-12-30 12:05:00.0

KEN ENTENMANN, CFA
SENIOR VICE PRESIDENT AND
THE DIRECTOR OF INVESTMENT MANAGEMENT SERVICES

Ken is a Senior Vice President and the Director of the Trust and Investment Services at Alliance Bank, N.A. He has 23 years of investment experience and oversees the management of assets totaling $1 billion. He holds a B.S. in Applied Economics and Business Management from Cornell University and an M.B.A. from the William E. Simon Graduate School of Business Administration at the University of Rochester. He has also earned his Chartered Financial Analyst designation. He is a member of the Executive Committee of the Trust Division of the New York Banker's Association. He is also a director of the Central New York Community Foundation.

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