We told you about the Rise of Tech Africa yesterday, a continent with a young vibrant growing population poised to possibly become the center of technological innovation over the next century and on the flip side, we noticed an interesting CNBC article today that seemingly demonstrates what the antithesis of that could be, a country that fell from global empire to a member of the European Union to ‘Emerging Market’ status. From CNBC:
Political instability, trade disruptions, an energy crisis and skyrocketing inflation are rendering the U.K. an “emerging market country,” according to Saxo Bank…The only factor missing from a characterization as an emerging market country, Dembik said, is a currency crisis, with the British pound holding firm despite the litany of macroeconomic headwinds.
CNBC.com
We don’t think it will be very long before the British Pound falls off a cliff given the enormous macro economic problems the UK created for itself and leaving the EU was supposed to lead to some type of panacea but clearly Brexit has created its own sets of problems and issues.
The demographics of the UK is just as bad as other western countries and poised to create even more problems for the UK over the next few decades. We tend to avoid investing in UK based companies for this reason but there may be some opportunities in some areas. We’ll let you know what we find but in the meantime stay tuned and stay solvent…