Enquirica Research - Invest in Productive Assets October 7 2010

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Invest in Productive Assets – Research by Enquirica

October 7, 2010 Calgary

Hedge fund manager Kyle Bass of Hayman Capital at the recent Barefoot
Economic Summit recommended avoiding equities entirely. He made the
comparison to the stock market in Zimbabwe where unlimited monetary
expansion has been practiced for years - “Zimbabwe was the best performing
stock market in nominal terms over the last decade, yet you were wiped out in
real terms”. With the events that are unfolding in monetary policy in the
developed world and with further QE to come, Bass prefers investing in
productive assets as a hedge against inflation.

Enquirica has the same view with one additional condition - invest in cash-flow
positive production assets in politically stable regions of the world. Political risk is
a key return determinant when investing in commodities – see the expropriations
of energy assets in Russia and potentially of farmland in Brazil.

Over the long term research shows that you capture the value of the raising
commodity prices with less volatility as they are ultimately capitalized in the value
of the production assets.  In the interim you are holding a cash-generating
asset.

Enquirica Research is a Calgary based firm focusing on independent analysis of


alternative asset classes and investment opportunities in exempt market
securities that target investments in western Canada. For copies of Enquirica
research register at www.enquirica.com.
DISCLAIMER: The opinions, estimates, projections and other information which is contained herein and
derived from or attributable to persons other than ENQUIRICA is neither endorsed nor adopted by
ENQUIRICA – it is presented for informational purposes only. Further, the opinions, estimates, projections
and other information contained herein are not intended and are not to be construed as an offer to sell, or a
solicitation to buy any securities, including any exempt market securities, nor shall such opinions, estimates,
projections and other information be considered as investment advice or as a recommendation of any
exempt market dealer or as a recommendation to enter into any transaction.

FORWARD-LOOKING INFORMATION: This news release may contain certain information that is forward
looking and, by its nature, such forward-looking information is subject to important risks and uncertainties.
The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar
words are used to identify such forward looking information. Those forward-looking statements herein made
by ENQUIRICA, if any, reflect ENQUIRICA’s beliefs and assumptions based on information available at the
time the statements were made. Actual results or events may differ from those anticipated or predicted in
these forward-looking statements, and the differences may be material. Readers are cautioned not to place
undue reliance on any forward-looking information contained in this news release (if any), which is given as
of the date it is expressed herein. ENQUIRICA undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new information, future events or otherwise.

For further information please contact:


Enquirica Research Inc. - “independent analysis of alternative asset classes and opportunities in exempt
market securities”
Email: enquiries@enquirica.com
Web: www.enquirica.com
 

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