Economic Crisis Or Just Another Hoax?
Is economic crisis under way?
Over the recent years it looked as if everything is under control internationally. However, a lot of economic and political events occurred lately which of course showed some serious signs and warnings. Will economic crisis affect us in the next two years?
The situation in 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 to see some economic crisis in the next two years. China’s economic growth is in the slowdown and USA annual GDP growth slowed down significantly as well. UK economy has big problems with Brexit and the German economy is slumping. Trade conflicts between the USA and China and the prolonged period of 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 economic crisis?
Increased and high gold prices, increasing dollar shows that investors seek to protect their assets and it also indicates some instability in the world economy. The interesting fact is that all this happened over the last two years. In 2017 no one would have guessed that the gold price in September 2019 will be 43,20 Eur per gram. Get back few years later and you would get 32-33 Eur per gram of gold. This fact shows a clear imbalance and this is probably old news for experienced investors or economists. The investment of gold was and still is a huge opportunity if chosen wisely and patiently.
The main hoax about economic crisis
But thinking about different perspective it is clear that there is a lot of speculation about economic crisis. The bad news is that a lot of investors believe and still listen politically formed opinions which sometimes are so moronic that you cannot even begin to imagine. However, the problem starts when people start to think and act in some way. That is a trigger which affects investors.
Where will the next economic crisis hit?
Some analysts say that economic crisis may start the United States as it was back in 2008. However, we should not forget the China and the USA and the most importantly the trade wars between them. It would be hard to believe that economic crisis and recession would start in China. But we would not be surprised about it after all because the USA can have a very strong and crunching effect worldwide to any country.
We must not forget the UK’s Brexit too. Any uncertain political situation or decision will impact investors heavily and harshly. It is obvious from now on that investors at least in the UK remain calm and very cautious. That means the economy may shrink harder than we originally thought. If Brexit problem will not be solved in 2019 or 2020 we may see the crisis even in Great Britain. That would definitely cause huge disruptions in Europe and may have some impact worldwide.
The economic crisis is very speculative and broad subject. 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 to zero. This is the story what exactly happened in 2008 and a lot earlier. Taking everything into account it is worth mentioning that whatever decisions will be made during the year of 2019-2020 they must be made wisely and advisedly.