Max King's 2011 A-Z of global investing

Investec manager Max King presents an A-Z of the major themes that have shaped the investment world throughout 2011.

Albanians
"Even the Albanians are leaving" wailed one Athenian in despair at the descent of Greece's capital into chaos and depression, thereby coining a new metaphor for "rats leaving a sinking ship." Greek tourism, however, benefited from holidaymakers avoiding North Africa and from measures taken to help the industry, with early season arrivals up 10%.

Banks
European bank Dexia was rescued by the French, Belgian and Luxembourg governments just three months after it passed the EU stress tests with flying colours. With banks throughout the euro-zone weighed down with the sovereign and private sector debt of countries facing exit from the euro-zone, their share prices collapsed. Further liquidity and capital injections on an epic scale are inevitable if a global banking crisis is to be avoided.

Currency
Argentina knocked a cumulative 12 noughts off its currency between 1970 and 1990 in four separate occasions. Since then, the pace of devaluation has moderated but with sustained capital flight, exchange controls and escalating inflation, the outlook is deteriorating again. Note that the Bloomberg code for the peso is ARSE.

Deutschemarks
The Bundesbank estimated that, nine years after the transition to the euro, €13.5bn worth were still in circulation, a number that is unlikely to have shrunk in 2012.

Eurozone crisis
The pundits spent much of the crisis calling for a "big bazooka" solution from the European politicians, the European Central Bank and EU officials. A WW2 veteran points out that "the German equivalent of the bazooka was the panzerfaust, a weapon requiring very little training but suicidal recklessness." Tip-toeing quietly away from the oncoming tanks would be a much better idea, and appears to be the preferred response of the Euro-establishment.

FTSE 100
As of mid-December, ARM was on course to be the FTSE 100's best performer for the third year running (Weir out-performed in 2010 but only entered the FTSE 100 late in the year). ARM, a designer and licenser of semiconductor chips, is designed into Apple's i-phone and i-pad. The FTSE 100's worst performer was Lloyds Bank. Whatever the markets, running winners and cutting losers is a powerful investment strategy.

Guns
A recent Gallup survey showed that gun ownership in the US had risen from 41% to 47% of American adults in the last year. Ownership by Republicans and males is unchanged but ownership by women surged 10% to 40% and by Democrats by 10% to 43%.

Harry Potter
As the last episode of the Harry Potter octology reached the cinema screens, a rare book dealer was asking £29,500 for a case-bound first edition of the first book, "Harry Potter and the Philosopher's Stone." The highest recorded price paid is $37,000. 500 copies were printed.

Indonesia
A Jakarta court sentenced Gayus Tambunan, a former Indonesian tax collector, to seven years in prison for bribing his way out of jail no fewer than 68 times. The Jakarta Post named him Indonesia's "man of the year."

Jobs, Steve
The death of the half-Syrian founder and Chief Executive of Apple, the world's largest company by market value, from cancer at the age of 56 showed a different side of public attitude to wealthy business leaders from the "occupy" protests. Shrines outside Apple stores and the mourning of customers showed that they can be worshipped as well as vilified.

Krone
Forget the Krone, the store of value to own in Norway in recent weeks has been butter. A combination of falling milk production and soaring demand, owing to the growing popularity of high fat, low carbon diets has seen prices soar. The Telegraph reports 500g changing hands for £300 and the Metro that a Russian smuggler has been apprehended on the Swedish border with 90kg hidden in his car.

Libyan School of Economics
Close links between the otherwise highly-respected LSE and the Gaddafi family, including the acceptance of a £1.5m donation, forced the resignation of its Director, Sir Howard Davies. It took an eight month civil war and an estimated 25,000 deaths for the rebels to oust the Gaddafi family with Western help.

Mugs
In their rush to be first to market with a commemorative mug for the Royal Wedding, Guangdong Enterprises advertised a design which featured Kate Middleton and .... Prince Harry. The mugs, offered at £9.99, were quickly withdrawn but were soon in hot demand on E-Bay.