U.K. under pressure?

Good Morning Ladies and Gentlemen

In his iconic book «The Sun Also Rises» or «Fiesta», Ernest Hemingway’s character Michael Campbell (Mike) is asked how he went bankrupt, and this is his answer:

«Two ways. Gradually, then suddenly.»

Brexit

In 2018 I was asked to share my view on BREXIT, which led to an article in the summer edition of the magazine « Global Executive ». One of the key messages was the following:

«In my view, one of the biggest risks is that the Bank of England will flood the market with money to offset the effects of an opaque business investment climate that will certainly reign until the negotiations between the U.K. and the E.U. bring clarity and that this flood of money will not only weaken the British currency but will lead to inflation and eventually backfire at British consumers.»

Foreseeing the future

Obviously, I cannot foresee the future; it was just common sense. The sterling lost about 40% of its value, the Bank of England flooded the market, and inflation is staggering; average British consumers are suffering. Nevertheless, I can imagine that there is potential in the U.K. Some great companies have been hammered down, and I would not be surprised to see at least a market rebound.

Link

If you feel like reading the full text, please feel free to click on the link below:

https://www.incrementum.li/wp-content/uploads/2016/08/Life-after-Brexit-Executive-Global.pdf

Next week

Next week, Ladies and Gentlemen, I will come back on Mike Campbell’s quote «two ways. Gradually, then suddenly».

Ladies and Gentlemen

As always, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.
Many thanks, indeed!

I wish you an excellent start to the day, a great weekend, and peace above all!

Yours truly,

Stefan M. Kremeth
Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
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9494 Schaan/Liechtenstein
Mail: smk@incrementum.li