From Wall St. to Hong Kong, the markets are reeling
Sir Isaac Newton said, “For every action, there is an equal and opposite reaction.”
With the global financial markets in turmoil, Panama could very well benefit. For many years Panama has been touted as an offshore haven. Grey area business types, tax planners and multinational corporations have all enjoyed Panama’s solid financial system, corporate law, and banking secrecy policies.
As indicated by the gigantic sell offs this week both in U.S. and other exchanges, masses of investors have lost confidence in the traditional stock markets. But where will all that money go? Panama and its famous offshore accounts may be on the receiving end.
In addition to Panama’s strong banking sector, its local stock market, the Bolsa de Valores de Panama (PNS: BVPA, www.panabolsa.com), expects annual growth of 6.5%, adjusted down from 9.5% estimates earlier this week. The Canal expansion project remains a go, new construction has somehow remained en fuego, and tourism continues to grow steadily.
Could Panama be one of the “recession proof” locales investors are desperately seeking?
International stock markets and foreign real estate have been en vogue on past occasions when the DOW and other major exchanges have under-performed. It hasn’t always worked out, however, with crashes of both the Brazilian, Indonesian and Argentinian markets as just three examples.
As the train wreck of international financial institutions continues to take its toll, it will be curious to see how many disgruntled investors find their way to Panama.
|Written by Casey Halloran|
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Filed under: Business on October 10th, 2008