Investors do not like uncertainty it is said, yet it is surprising how well the stock markets are holding their value despite so much uncertainty. Are we in another pre 2008 situation, waiting for an event that will trigger a collapse in confidence, or will the markets ride out each of these threats to the real economy ?
Some of the risks facing investors.
Government debt in Italy heading towards 150% of GDP combined with a stagnant economy could lead to default that would be very hard to contain. A US-China trade war could trigger a panic in Chinese equities. Theresa May losing her vote in parliament for her Brexit deal, may lead to a no deal economic slump in the UK. Or if the "Gilets Jaunes" in France get under the control of extremists, it may lead to economic blockage.
Property as a safe haven
Whatever the outcome, potential risks have never been higher and this is why I privately sigh with relief every time one of my clients buys a property and get their savings out of a potential financial trap into an investment with real value. A property, like land, is one of the few assets with real residual value, one that you rent or find shelter in whatever happens in the outside world. And if you need shelter, the French Riviera and countryside inland is definitely one of the safer and nicest areas to move to.
I hope 2019 will bring more peace and harmony and just prosperity for a safer world !
Some of the risks facing investors.
Government debt in Italy heading towards 150% of GDP combined with a stagnant economy could lead to default that would be very hard to contain. A US-China trade war could trigger a panic in Chinese equities. Theresa May losing her vote in parliament for her Brexit deal, may lead to a no deal economic slump in the UK. Or if the "Gilets Jaunes" in France get under the control of extremists, it may lead to economic blockage.
Property as a safe haven
Whatever the outcome, potential risks have never been higher and this is why I privately sigh with relief every time one of my clients buys a property and get their savings out of a potential financial trap into an investment with real value. A property, like land, is one of the few assets with real residual value, one that you rent or find shelter in whatever happens in the outside world. And if you need shelter, the French Riviera and countryside inland is definitely one of the safer and nicest areas to move to.
I hope 2019 will bring more peace and harmony and just prosperity for a safer world !
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