‘BREXIT’ Poses Risks To Sterling Assets – UK Stocks and London Property
By Gold Core
GoldSeek.com
Tuesday, 10 March 2015
Political uncertainty beginning to impact bond and property markets
UK bonds and stocks at all time record highs and ‘bubbly’
FTSE looks overvalued and ripe for sharp correction
“Air of caution in the run-up to the general election” hits London property
City of London has most to lose from Brexit
Brexit may isolate UK – “North Korea option” – or lead to strong, independent UK, like Hong Kong
Real diversification remains only “free lunch”
With all the focus on Grexit in recent weeks, investors have not paid much attention to the risk posed by ‘Brexit’ or the possibility of the UK leaving the European Union.
This is the case in currency and stock markets with the FTSE and sterling remaining buoyant despite obvious risks. Indeed, gilts remain close to all time record highs – in part due to QE.
The FTSE 100’s successive new record highs in recent weeks despite the deteriorating global economic backdrop has echoes of previous bubbles. We all know how those ended – see chart below.
The Rest…HERE
