According to many, Brexit couldn’t happen, but there were quite a few people who also made loads of money when Brexit came about. Do you wonder how post Brexit equation looks like and how it can affect your portfolio? XTrade experts are known for keeping an eagle eye on every development, the past signals and how it can help you prepare for the future.
Before we dig into more details, let’s take a look at the development since Brexit has transpired. GBP plummeted drastically to reach its lowest in 31 years. Bank of England indicated possible cut in interest rates in August. It’s not hard to understand that these developments shook the confidence of consumers and enterprises.
So, What XTrade Experts Advised The Investors?
XTrade expert investors advice is never meant to be missed. They are in agreement with majority of experts who find it wise to take each step cautiously. Keeping a close eye on developments and being cautious before jumping to any conclusions is what the experts advise to investors. They ask a simple question. What happens in a Brexit like situation which apparently is a big impact situation? There is always a knee-jerk reaction to the situation, but again it’s not advisable to jump to conclusions and act in a hurry. Investors must, first of all find out what’s happening. Many investors remain unfazed after Brexit and it’s advisable not to make them change their mind. Brexit, however is capable of making a big impact on investors efforts and money, their properties, pensions and even the capacity to trade collectibles.
Big Question- Should One Buy Government Bonds?
Now, truth be told, the UK economy looks quite bleak in near future. This can be attributed to the UK losing their AAA rating which undoubtedly has left a negative impact. Nonetheless, a good number of investors have been seen purchasing government bonds. What else can this be attributed to other than immense optimism? So, it’s subjective and an individual’s call.
Those who believe that UK economy will bounce back in the wake of the challenge thrown at the European Union in the form of the goodbye, must now go for purchasing fixed income securities right now. According to the experts, it will not be a wise move at the moment.
Another vital point to be taken into consideration is the lethargy of inflation. What happens if inflation continues at a snail’s pace for a long time? As per the XTrade experts, Bank Of England will be forced to cut down the interest rates in that case, which is why the best time to lock in the interest is now. UK Govt. bonds have been one of the top assets hitherto and the UK Govt. is likely to support the government bonds in near future as well.