A new survey shows how the impact of the Brexit will be limited to Europe and some other smaller regions in the world. Interestingly enough, neither the Middle East not the United States should see any significant impact on their economies. That does not mean the global economy is out of the woods yet, though. Portfolio diversification remains important, and cryptocurrencies provide an excellent opportunity to do so.
The Brexit Impact Will Be Limited To Europe
Although it is still too early to tell, a new report indicates the Brexit effects will not shake up too many regions. Their study finds that the UK and EU member states will face the brunt of the damage. This is not entirely surprising either, as this particular conflict revolved around the position of the UK in the European Union.
More interestingly, this study shows how there be little to no impact on the US, the Middle East, or the Commonwealth of Independent States. That is quite a bold statement, as no one can predict what will happen across financial markets in the coming months. Several US banks have signed an agreement to help Italian banks if they would be unable to deal with a recession. If that promise needs to be kept, it will impact the North American economy for sure.
A total of 762 economic experts have been polled for this survey, and they all agreed the EU will be facing the short-term Brexit impact. Given the current banking crisis in italy, it is evident the EU member states will be facing some tough decisions during the remainder of 2016. Even a small wave of negativity could topple the European economies in the near future.
To make matters even worse, the Brexit is expect to “put the brakes on EU member states’’ economies” in the next three to five years. Slightly negative economic effects are on the horizon for the Commonwealth countries as well. Once again, it is far too early to tell what the fallout will be, as every country in the world is performing damage control and risk assessment right now.
While these reports may paint a worrisome picture for the EU member states, nothing has been set in stone yet. That does not mean consumers should not diversify their assets, though. No one is saying people should invest all of their life’s savings into cryptocurrency or precious metal. But now is the time to explore all options, before the recession hits.
Survey Source: Reuters
Header image courtesy of Shutterstock
X-Post From Our Blog : New Brexit Survey Predicts Multi-year Financial Impact For EU Memberstates | Written by JP Buntinx
Interesting article and great advice!
Of course it is always important to diversify, and crypto is looking like a great asset to have in a portfolio right now.
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