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By PWM Editor

“March 2008 was characterized by falling commodity prices and another interest rate cut by the FED. The recent commodity rally was abruptly reversed as the oil price plunged by 10 USD from its all-time-high of almost 110 USD and gold lost approximately 9 per cent from its peak price of around 1,000 USD. In order to prevent the US from sliding into a recession, the Federal Reserve Board cut the interest rate by 75 basis points to 2.25 per cent. We liquidated our commodity position and built up an exposure of 10 per cent (according to MSCI World) to the Japanese market.”

 

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