Europe has had its share of bad coverage over the past decade, including sovereign debt crisis and political instability. The political clouds here refer to never-coming to be Brexit. Its success is likely to have a lot of implications for both Europe and the UK.
If you are an investor who has avoided Europe in the past, you have a reason to be forgiven. Despite the gloom and doom, the European market produced impressive results for the last few years. As you know, when it comes to investment, past performance does not matter a lot. The following are some reasons you should consider investing in Europe.
Forward-thinking Continent
Ideally, Europe is both a forward-thinking continent and more traditional in a wide range of ways as compared to the USA. Here you will find extremely innovative, high-energy, and creative tech hubs, across Europe, from London to Berlin, from Tallinn to Warsaw, from Amsterdam to Paris………
Diversity of experiences, ideas, and cultures has manifested itself across entire Europe. In fact, this diversity is massive, considering added value to the start-ups that are ready to hire a wide range of talent and experience. It is rare to find a London-based company with more than 40% of British employees. That is because there is free movement of people across Europe.
Diversification
Europe has over 50 countries, and each has its political system, economic strengths and weaknesses, and culture. The disparate nature of economies is advantageous for investors who are after geographical diversification. Also, the companies that inhabit this region are diverse, and there are many success stories of small companies that are likely to become tomorrow’s market leaders.
Low Oil Prices
Europe has enjoyed a sustained period of low prices. In fact, this has been a huge boost for many European economies. It helps put money in the hands of consumers. Also, it helps reduce the continent’s high energy levels. You should note that Europe leads to the importation of oil and oil-related products. However, there are concerns that lower oil prices can cause a deflationary trend and have a negative impact on oil service companies and producers operating in Europe.
Lucrative Real Estate
If you want to diversify your portfolio and branch out by investing in foreign real estate, then you should consider Europe. As per investment blog, Investing in real estate in Europe has many advantages to offer that include accessing offshore makers and diversity. In some instances, you can be offered immediate citizenship. That is when your investment is considered to be huge in real estate.
Getting citizenship is quite attractive if you want to be an expatriate or if you want to get a second passport to enjoy visa-free travel. That can play an important role in stress-free travel or offshore retirement. Moreover, you can enjoy a lot of tax benefits as a result of investing in the property industry. If you are from America, this is one of the legal ways you can keep your money offshore. However, you have to ensure that your investment is held in your name and not in a trust.
European Central Bank (ECB) Support
The Euro did not have many fans a few years ago. In fact, investors avoided it because of depression and deflation. Fortunately, ECB has changed its monetary policy measures with billions injected into the system monthly through buying of corporate and government debt with the need to reduce interest rates, boosting investment, stimulating bank lending, and creating jobs.
Although it might not be the savior of underlying structural problems in Europe, the markets in this region are bound to benefit a lot from ECB’s monetary policies. For instance, ECB’s actions have seen the fall in the value of the Euro against the dollar. If you are running an export business, this will result in more sales and better profits.
The truth is that at the moment, Europe is a popular investment destination, particularly for retirees because of low interest rates, thanks to ECB’s monetary policy. Other reasons are asset diversification, hedge against inflation, geographical diversification, and high-income return. Some investors are in search of solid returns while others want to make the new investment. No matter the path you take, several countries in Europe will make your dream a reality.
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