We're Trying To Save You £8,750 On Stamp Duty Fees. Find Out How You Can Help

Fleet Street Letter investment director Theo Casey is on a mission. Theo, a member of the UK Shareholders’ Association, is fed up paying stamp duty.

"How can the self-titled financial capital of the world operate such a prohibitive levy?" he asks.

And that’s before you consider how much we — the ordinary investor — have to pay for this madness. Every time you buy a share, the Treasury takes a cut of 0.5%. This may not sound very much — but it all adds up.

Theo’s worked out that a typical investor, by the time they’ve reached 65, has racked up stamp duty fees of £8,750. If anything, this estimate is on the conservative side. Many investors end up paying far more than this, as you’ll discover by reading Theo’s piece. I have a rule of thumb that I apply to this sort of situation. It’s called the ‘If it didn’t exist would you invent it?’ rule. Imposing stamp duty on share purchases fails this test miserably.

That’s why today we’re starting a campaign. And we’re inviting you to join us. We simply don’t see why this duty should continue to exist. It’s an impediment to investment.

I realise this has been tried before. And here we are — still paying stamp duty on share purchases...

Well, let’s dust ourselves off and try again, shall we?

"There is nothing ‘greedy’ about binning stamp duty," says Theo. "In fact, there’s evidence to suggest it could actually boost GDP."

Find out more about the Fleet Street Letter’s Campaign Against Stamp Duty.

Why Theo feels sorry for Nouriel Roubini

"You’ve got to feel sorry for Nouriel Roubini," said Theo at our editorial meeting this morning.

Economist Roubini — otherwise known as "Dr Doom" — is a man who can legitimately claim to have seen the credit crunch coming. It was just under two years ago that he told an audience of IMF economists his bleak vision of the future...

The US would see a once-in-a-lifetime housing bust. Homeowners would default on mortgages. The global financial market would shudder to a halt. There’d be an oil shock.

The coming chaos, he predicted, could obliterate hedge funds, investment banks and other institutions like Fannie Mae and Freddie Mac.

And yet... the economists to whom Roubini delivered his message laughed. I’m not joking — they actually laughed. The event’s host, upon taking to the stage, thanked Roubini for his words and added: "I think perhaps we will need a stiff drink after that." And the audience laughed.

You can’t really blame them. This was September 2006. Everything looked rosy. People were too busy being greedy to be fearful.

Theo feels a bit sorry for Roubini because no one heeded his warning. Fast forward to yesterday, and Ken Rogoff — former chief economist at the IMF — makes a rather vague prediction, and everyone sits up and listens.

"The financial sector needs to shrink," said Rogoff, who reckons the financial crisis is about half way done... give or take. "We’re not just going to see mid-sized banks go under in the next few months," he adds, "we’re going to see a whopper." The markets flipped when they heard that. The FTSE 100 closed 129.8 points down. Financial stocks were the worst hit.

All of this caused by one man stating the bleeding obvious!

It goes to show how fearful investors are right now. Perhaps it’s time to be greedy?

We’re keeping our eyes peeled for opportunities...

A 237% gain thanks to the Benguela Railway?

Manraaj Singh recently told readers of his Profit Hunter service to invest in a unique African company. That investment has just received a major shot in the arm...

The Benguela railroad has snaked through Africa for more than 80 years. It links the copper-rich mines of Congo with the Angolan port of Lobito. But the long civil war in Angola has caused the line to fall into disrepair.

Here’s where we come in...

The Angolan government has big plans for both the port and the railroad. Lobito has already become a major hub again. Now they’re rebuilding the railroad. As Manraaj explains, that’s great news for his readers — and for you if you get in now.

Find out why Manraaj reckons this development could help you bag a 237% gain if you invest today...

Until tomorrow

Ben Traynor

Editor

PS Don’t forget, tomorrow’s Thursday. That means it’s the day we answer questions. Send your investment query to askfleetstreet@fspinvest.co.uk

Selected articles:

Manraaj Singh on The Railroad to Africa’s Riches

Garry White on the most valuable commodity in the world

The Daily Reckoning — The US is not like Japan

The happiest days are the saddest; the easiest times are the hardest; vacations are when the real work is done. Most of the year, we keep our heads down...working, going to school, doing what we must do. Then, on vacation, we look around us, and the world has changed. More below...

In the meantime, we remind readers that we are on vacation this week; don’t expect any serious reckoning.

You can read The Daily Reckoning in full here. P.S. If you enjoyed this article then we encourage you to sign up for the free Fleet Street Daily eletter. Learn what you can expect from today's markets -- and how to prosper in the face of uncertainty. You won't find more thought provoking writing anywhere on the Internet.

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We're Trying To Save You £8,750 On Stamp Duty Fees. Find Out How You Can Help

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We're Trying To Save You £8,750. Find Out How You Can Help