FROM: The Praetorian Guards:
To: All clients with property exposure in Dubai
Dear Friends,
We have been hearing more than a few horror stories about the crash of the property market, and the bubble economy of Dubai and the Emirates.
We wish to advise you to consolidate your position in these markets immediately, and, if possible restructure your portfolio to protect yourself from further falls in the marketplace.
Our view is that the many of the property markets in the region could experience a further drop of 50% as the credit market crisis and the deleveraging of the global asset market continues.
A consensus is developing that global de-leveraging and asset re-pricing could continue through 2009 at which time we may touch bottom. In the meanwhile, urgent action is required to rebalance your portfolio in order to minimize losses and protect the long term sustainability of your wealth.
The sales market in Dubai has all but collapsed. Couple this with the frozen market for both real estate and stocks in Russia and you may find yourself in an extremely uncomfortable position. We need to talk to find the quickest and safest way to restructure your portfolio today.
Forbes commented on this as well
here