Great Britain Not Doing So Well

by Minority Fortune

londontowerbridgeOur fellow British nation has experienced an alarming six GDP contractions in a row. This is the first time in over 55 years that this has occurred. The Office of National Statistics noted that their GDP dropped .4 percent between July and September. As a result, the GBP/USD dollar ratio has dropped to a rare low of 1.64/1 (as of October 24, 2009).

Many speculate the contraction is an indication of their shrinking production levels. The service, industry, and distribution sectors have all been on the decline for the year. This news has been devastating to those with higher expectations for Britain.

Britain is far from the only country still struggling to recover from the global recession. Hopefully, the banks, real estate, production, and job markets improve so that the country gets back on its feet. We hate to admit it, but the lower exchange rate on the dollar looks really good! However, we look forward to the country’s (and the rest of the world’s for that matter) recovery.

All bad news isn’t necessarily bad. It could mean opportunity. At this point in time, it is an opportunity for the savvy investor to look into under-valued British assets. With successive GDP and currency contractions, it may open the gates for all-time low prices on assets. However, we advise you to only opt for assets in which you are knowledgeable. Otherwise, the risk may be too great.

*Image courtesy of Thinkstock.
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