With all the talk of Brexit in the past few months, most businesses are forgiven for giving Britain a wide berth. The uncertainty together with the anti-Brexit rhetoric makes it impossible to want to invest in the country. Even with the new Prime Minister, Theresa May, there isn’t much to reward investors. Or is there?
The truth is that all the hype surrounding Brexit isn’t as bad as it seems for businesses. In fact, now is a great time to invest for the long-term, and here’s why.
The Pound Is Getting Stronger
It is true that the pound dropped dramatically after the news of Brexit. In the interest of all fairness, it recorded some of the biggest drops in its history. However, the dust is starting to settle, and that is good news for the pound. At the minute, it is back up to $1.32 to the dollar and rising. In fact, the rise against the dollar in the past few weeks is the biggest in the last eleven months. Of course, it is worth noting that the current value is nearly two points lower than normal. Still, the increase in the value against the dollar is a good sign that the pound is recovering. Within the next few months, the value could be almost the same as before the split.
And Europe Is Getting Weaker
One of the biggest reasons the UK left the EU apart from immigration was the state of the Union. The European Union is supposed to be one of the biggest and most effective trading blocks in the world. To back that up, the combined economies of the member states are the biggest in the world. However, the block lags behind when it comes to the superpowers of the world. The USA, for example, has 8 trillion dollars more worth of GDP every year. And, if you think that is an unfair example, the Commonwealth has 4 trillion dollars more. Now that they are free, there are no shackles to inhibit the country’s ability to make money.
Britain Could Become A Safe Haven
What will happen when Europe starts to fall? The investors in the region will turn to the UK because they need a safety net. As the UK doesn’t play by the rules of the Union, they will be fine. In fact, they will get stronger as the EU gets weaker. The amount of money coming into the region will skyrocket if the Europe Union begins to fail. For businesses, that is a good thing because they know they can make money from the British economy. All you need is a business loan from www.businesslendermatch.com to exploit the situation. Every investor needs a safety net, and Britain could become that net in Europe.
Scotland Won’t Leave
Okay, it is a bold statement to say that Scotland won’t leave the United Kingdom. With an inevitable referendum at some stage in the future, the future of the Kingdom is in the hands of the Scottish public. On the basis of probability, however, there isn’t much to suggest a change. For a start, the country voted to stay in the UK only two years ago. Although things are changing, two years is only a short time. Plus, the future of the EU is shaky. Why would Scotland want to leave the UK and join a failing organization? If there is any common sense in the world, Scotland won’t leave Britain.
Independent Trade Deals
Probably the biggest benefit of Brexit is the fact that Britain can impose new trade deals. Whereas they had to follow the Union’s rules, they can make individual deals after the split. For investors, this is a brilliant prospect. If they can get into the market with India and China, there is a lot of money on the table. China and India are two of the biggest emerging economies, and every business wants a piece. With the EU out of the way, it is a realistic possibility. Is it going to happen? If you believe http://www.bbc.co.uk, countries like Australia are already on board.
Uncertainty Is Waning
Overall, the uncertainty over the split is starting to wane. With a new Prime Minister and backing from other countries, it looks like Brexit could work for the British. Whether all of the above happen, investors still need a strong Britain because it is the fifth biggest economy in the world. As long as it maintains a steady position, the decision is a no-brainer.
There are risks, but the benefits outweigh the negatives in a many respects.