With figures released this week showing the United Kingdom economy has shrunk again, we looked at five reasons why investors should now begin to take a braver outlook. Please note that this is a guest post to the Wall Street Subscriptions website contributed by a guest author. If you would like to contribute to the blog then please contact us.
1. The Government is Dithering
Members of the United Kingdom coalition Government appear to have lost faith in Chancellor George Osborne, so how the public are supposed to have any belief in the economic future of the country is beyond me. With a distinct lack of leadership despite repeated, passionate speeches that this Government want to “Get Britain Moving” and “Britain is open for business,” perhaps the only hope for the economy is for investors to take brave, yet calculated risks in high potential businesses and entrepreneurs.
2. At Least the Country is Stable
For years, people have been investing in commodity rich countries with vast sums of money, regardless of the political situation there. Iraq is just one example of a country that, despite having removed a corrupt regime, remains somewhat unbalanced and volatile, indeed there have been bomb attacks in central Baghdad just this week.
While the UK has its faults, there is little to no risk of this country falling into civil war and, while there are no potential riches to the degree of oil to be had, there are definitely opportunities.
3. Banks Will Have to React
Should the investment community mobilize to begin pushing the country into growth once again, banks will simply have to react. Public confidence in the banks is already at an all-time low, and their reputation would take an even bigger beating if they were seen to stand by in the manner of the Government while private equity led the country into growth. If people gain confidence from this and are looking to spend again, the banks will need to make securing credit easier if they are to compete and remain a credible service provider.
4. Forget the Euro
As much as David Cameron likes to talk about how the fate of the Euro will impact on the United Kingdom, the reality is that there are huge opportunities to be had. The publicly traded markets are already suffering because of Europe, so brave investments into privately owned, solely UK-based industries will help to boost growth and minimize any impact a further Eurozone disaster has on the country.
5. Is There an Alternative?
Ever since taking office in May 2010 we have heard all about “the mess we inherited” from the current Government. As we explored earlier, clearly their plans are not working and they seem short on ideas besides cutting the fiscal deficit.
With the Government not able to make it work and the banks seemingly powerless, private equity investment could be the only hope for the UK economy.
About the Guest Author: Dealmarket is not only a company that offers a more efficient and accessible private equity marketplace, but also an investment community. Please click the link to find out more about them.
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