Ten top tips for surviving the financial crisis

Credit inter-bank spreads have widened dramatically, and this is highly damaging.

But it means fixed rate deposits have jumped to
record levels.

Try a UAE local bank, or HSBC in the UAE which offers 4.71% on three-month deposits. Both local and international banks in the UAE now have an unlimited state guarantee on all deposits, so this is as safe as it gets.

Another piece of good news: The exchange rate for the US dollar has improved significantly, so your money will go further when you travel or send money back to your home country.

Investors fishing for cheap shares have got their fingers burned locally and globally this year as prices have continued to fall. However, local equities are beginning to discount a recession that will almost certainly not happen in the UAE. Therefore, they will soon be a great buy.

Gold has not risen as sharply in value during the global share sell-off as some expected. But the trillions of dollars now being spent to bail out the global banks is hugely inflationary, and
precious metals should benefit as this inflation comes through, or even earlier as investors anticipate it.

Financial advisers charging large fees for investments that have been falling in value should be avoided. One good thing about falling
markets is that it makes people question the fees paid to these people who are nothing more than a tax on your investment, unless they add
significant value, and do they?

Local shares should rebound first. Be more cautious about global equities. This is not a normal cyclical recession, and banking crises
typically need longer recovery periods. A long bear market in equities is possible like in Japan in the 90s where stocks today are only a
quarter of their peak value 18 years ago.

That said if you want to buy a pension fund with cash then you will get a much better deal than before the crisis. Bad luck if your financial adviser had just put you into a pension fund earlier this year. Expert advice can be costly.

If you have been living beyond your means on borrowed money then do not wait for a margin call from your broker, take action to ensure
that your debt is at a level that you can reasonably afford.

Reading this article means you are likely working in the Middle East. Standard Chartered forecasts positive growth rates for the next two
years while the world goes into a slump. Keep your job and you will be better off than many folks back home.

Keep saving while asset prices are deflating and you are going to be able to afford to buy more with your money in the future.