Is the economic crisis underway?
Over recent years, it looked as if everything was under control internationally. However, many economic and political events have occurred lately, which showed some severe signs and warnings. Will the financial crisis affect us in the next two years?
The situation in the world economy. Are our economies really stable?
Speaking generally, the world economy is slowing down at the current time. The latter is the first sign of an economic crisis in the next two years. China’s economic growth is in a slowdown, and USA annual GDP growth slowed down significantly. UK economy has significant problems with Brexit, and the German economy is slumping. Trade conflicts between the USA and China and the prolonged economic uncertainty seem to be most damaging to the global economy. According to that business, investments will be affected in one way or another.
Where to invest when someone gossips about the economic crisis?
Raised and high gold prices increasing dollar shows that investors seek to protect their assets, indicating some instability in the world economy. The interesting fact is that all this has happened over the last two years. In 2017, no one would have guessed that the gold price in September 2019 would be 43,20 Eur per gram. Get back a few years later, and you would get 32-33 Eur per gram of gold. This fact shows a clear imbalance, which is probably old news for experienced investors or economists. The investment of gold was and still is a massive opportunity if chosen wisely and patiently.
The main hoax about the economic crisis
But thinking about different perspectives, it is clear that there is a lot of speculation about the economic crisis. The bad news is that many investors believe and still listen to politically formed opinions that sometimes are so moronic that you cannot even begin to imagine. However, the problem starts when people start to think and act somehow, which is a trigger that affects investors.
Where will the next economic crisis hit?
Some analysts say that the economic crisis may start in the United States back in 2008. However, we should not forget China and the USA and, most importantly, the trade wars between them. It would be hard to believe that the economic crisis and recession would start in China. But we would not be surprised about it after all because the USA can have a powerful and crunching effect worldwide in any country.
We must not forget the UK’s Brexit too. Any uncertain political situation or decision will impact investors heavily and harshly. Investors remain calm and very cautious, at least in the UK, which means the economy may shrink harder than we initially thought. If the Brexit problem is not solved in 2019 or 2020, we may see the crisis, even in Great Britain. That would cause considerable disruptions in Europe and may have some impact worldwide.
The economic crisis is a very speculative and broad subject, and it can be triggered for a reason or as a chain of events. Usually, analysts try to persuade and influence politics to take some actions, but as a rule, they do not account. When the political decisions are not made in the right and precise time, the chances to change something after that equals almost zero. This is the story of what happened in 2008 and a lot earlier. Considering everything, it is worth mentioning that whatever decisions will be made during the year 2019-2020, they must be made wisely and advisedly.