The EU is the ‘biggest risk out there’ – strategist warns of dangers of bloc’s COLLAPSE
THE fall of the European Union is the “biggest risk” to the world’s financial markets, a leading European strategist has warned.
By JOE BARNES
Express.co.uk
Tue, Jan 3, 2017
The expert set aside fears that Brexit would be a determining factor in any economic downturn in 2017, instead pinning the blame on a predicted EU collapse for any potential decline.
Speaking on CNBC, investment firm Raymond James’ European strategist Chris Bailey claimed that despite uncertainty on the Continent, European markets should outperform their American counterparts in 2017.
Mr Bailey said: “I think the reality is, what is the biggest risk out there?
“It’s not Donald Trump, it’s not whether China’s economy can grow by six or seven per cent, it’s not Brexit.
“The biggest fear out there is European Union disintegration – and fears Europe is no longer going to be this cohesive area.
“The reality is that people worry too much about this in my view. My view would be that Europe is going to surprise the most in 2017, and consequently, the euro and European stock markets are big outperformers – and that’s a change from 2016.”
Other experts have predicted that sterling will continue to rise against the euro having made a strong start to the New Year.
November saw the pound bounce back after it hit new lows following the Brexit vote. But for much of December it was in retreat – with it failing to reach the highs of £1 to €1.20 that were forecast.
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