Barclays Stockbrokers Launches US Supertracker
All eyes will be on the US this month as Barack Obama is inaugurated and following the rapid decline of the US economy in 2008, the US market is predicted to begin its recovery this year. Barclays Wealth research predicts growth in US equity prices of over 15% in 2009 and a further 9.3% in 2010, as the economic recovery kicks off in the second half of the year. In response to this predicted growth, Barclays Stockbrokers has launched the US Top 500 Supertracker Investment Note
The Note, which is linked to the market value of the S&P 500 Index, aimed at investors looking to capitalise on predicted US growth, has a three-year term and offers two times the rise of the index up to 25%. Therefore the final index level only needs to have risen by 25% at the end of the three years for an investor to receive the maximum 50% return. Capital is repaid in full at maturity provided that the S&P 500 Index has not fallen to less than 60% of the initial index level at any time during the term. If it has and, at maturity, it is lower than the initial index level capital will be reduced by 1% for every 1% the Index is below its initial level. The Note is available until 26 January 2009, with investments beginning at £500.