In the initial hours after the leave vote came back victorious on Brexit, there was a rapid onset of pandemonium, not just in Great Britain but around the globe as well. Whist many saw the plummeting pound as a sign of another 2008 style recession, others believe it to be more a political event which would have much broader implications in the long term.
A Global Event?
The Brexit referendum was initially seen as being localised to the UK and whether or not the voters wanted to remain part of the EU or exit. The answer to that is well known by this point in time and it was a resounding ‘LEAVE’ that won the ballots. But the fallout isn’t limited to just the UK and the EU, it appears, as there is uncertainty in markets around the globe. Most are still in a state of wonderment and are hesitant to act with any certainty until things stabilise a bit. As a result of this ripple effect, Brexit is now being labelled a ‘global event.’
Leading Credit Market Experts Speak Out
According to experts from Morgan Stanley and GAM Holdings AG, this could be unequivocally bad for the global economy. However, not so fast! Other leading credit market experts are taking a counter view and say this could actually be very good for the economy in Britain as well as around the globe. On both sides of the fence, unfortunately, it’s being labelled a ‘wait and see’ event that will have no answer in the short term. More than a week later, the pound is still devalued to a 30 year low and as one of the main currencies in the Forex market, this is not a good sign at all – at least for the GBP and Forex investors who play that side of the trade.
How to Survive a Devalued Pound?
In the interim, many are questioning how to survive a devalued GBP. Since it has lost so much ground, money isn’t worth what it once was and many now have (in value) up to a third less than what they had just 10 short days ago. Many are keenly watching the market for signs that the pound is gaining in value again in the world markets, but so far the signs have not been good. A great number of consumers are seeking personal and home loans at sites like ukhomeandpersonalloans.co.uk to tide them over until the economy levels off, but there is no sign of that happening any time soon.
In ‘normal’ times when the pound is valued as it should be, the economy of Britain could get a big boost from foreign investors who see value in buying when prices are low. Unfortunately, there is no reason to believe the UK economy has bottomed out and ready to rise again so investors are slow in coming. Here again, this could be a good thing because if the prices start rising quicker than expected and investors start buying, the GBP will soon be back on track.