I wouldn’t be surprised if many developed economies continue their growth struggles in the near future. While various nations believe their economies are ‘strong’, those same nations are uncertain about the future.
The extent and diversity of European geography presents opportunities and poses challenges.
As the second largest entity in terms of GDP and purchasing power, the European Union’s business cycle fluctuations are sure to affect the investment market.
It’s all about knowing when — and where — the conditions will be positive.
We’ve seen the systemic risk of such a highly interconnected union.
Although the Global Financial Crisis of 2008 began in the United States, the fallout in Greece was particularly damaging; sour economic conditions led to unserviceable debt and default.
There was instant panic, especially among the Greeks’ European partners.
And it was because of the form of debt.
It’s a highly visible chink in the European armour: the common currency, the euro.
Like computers, if one user has a virus, the rest are open to infection.
Unlike the US, the countries using the euro have no system of fiscal transfers; there is no framework to correct economic imbalances that arise within the bloc. So, as the euro creates struggle in one country, it can drag on growth elsewhere.
Countries with an opt-out of the euro, such as the United Kingdom, are also tightly woven into the economic tapestry of the continent. Brexit makes this plain.
The pound is being hit hard as domestic markets face uncertain conditions in the wake of the decision to exit the bloc; the minutiae of details are all but decided, making investment difficult, weighing on exchange rates and increasing inflation.
Britain has gone from being the fastest-growing economy in the group of seven, to the slowest.
But the continent still has some powerful players…
For instance, the German powerhouse economy is still among the fastest in terms of GDP growth; job openings have recently hit historic highs, with few signs of momentum slowing.
Also notable is France. With the economy recently picking up speed; the country is experiencing its fastest growth rate in more than five years.
Likewise for Poland, with recent GDP growth in excess of 5%.
Europe and Australia
With economic relationships constantly shifting, so too is the global share market.
Of course, this means we must be wary of economic risks that arise, in all parts of the world.
If you want to stay up to date with our European friends, scroll down and check out all the articles we have on their unique economy.
With daily updates, you’ll never be out of the loop when it comes to the European project.
Our competitive advantage is in materials, mining and agriculture. The next 10 years could be a sweet spot of economic development for Australia…
France or the US. Which is worse? It is hard to say. But the French know something Americans don’t: This too shall pass. And it has made them cautious.
Governments are always finding ways to make life expensive, difficult, inefficient and unproductive. Particularly the French government…
Now, almost every large property in the valley is for sale. But there are no buyers. No investors. Who would want to take on so much trouble…and so much risk? Progress here has slowed down.…
The global stock markets have never been safer. Least, not in a quarter century. Apparently Macron’s election triumph has laid France’s problems to rest.
Le Pen winning the French presidential election was an outside shot. I got it wrong! Macron won 65% of the vote and became the French president-elect.
I believe that Marine Le Pen will win this weekend’s election and become the next French president. I don’t make this forecast lightly.
A Marine Le Pen victory is the perfect event for a stock market correction. So, how should you trade a Le Pen victory? It’s simple…
Europe is a debt and demographic time bomb. It (dys)functions with a ‘united’ economic model. A model that favours the industrious Germans over the rest.
The slightest withdrawal of the economic stimulant plunges an economy into depressive conditions. A very serious problem.
You should instead think of the coming correction as a major buying opportunity. Look to buy your favourite stocks near the low.
Money is going in to buy the juiciest of the Greek property assets. There’s plenty up for grabs when a country is bleeding like Greece was.
The sooner you embrace the cashless society, the sooner they can implement negative interest rates and stimulate inflation.