I previously predicted that the euro will be worth more than the pound by the end of the first quarter of 2019. In BoE’s latest foreign exchange paper, it has been muted — nay argued — that the combination of pure incompetence and total lack of pre-Brexit planning by the executive, should if the stars align, the grass stays green, cause the pound to plummet. Dedaaaaaah!! Wasn’t rocket science, was it folks?
I’m putting my head firmly on the block, and making this call: The combination of a stronger euro and a weakening pound will combine to make the euro more valuable than the pound for the first time in its history, and make it — in terms of pure value — the strongest major currency.
Spanish property prices will boom, as 79 million tourists from around the world look to invade Europe for cheap holidays and take advantage of the turmoil in the money markets. Britain’s impending misfortune will be very lucrative for foreign investors looking to gain a foothold in Europe. Britons on the other hand need to be very canny now, look after number one, and seek to maximise your family’s investment opportunities by hedging your bets.
Rental prices for holiday lets will increase in Spain, as everyone who likes a bit of sun will be looking to outsmart the travel agents. Being the very nice people they are, agents are likely to hold us all to ransom by increasing their prices by hundreds of pounds. It’s not personal.
So, any guesses as to where everyone who owns a Spanish holiday home has their weekly €600 / €1,000 income from their property rentals? I’m certain it’s not coming back to the UK folks, and nor should it. Anyone with half a brain will leave it in their Spanish account and then use their Spanish flexible plastic friend to fund their lifestyles here in the UK.
If the forecasts are correct, then the euro will continue to strengthen and will move ‘beyond parity’ with the pound during the first three months of 2019, hitting a peak of £1.02 before weakening a little as the year progresses.
Countries like Spain have fought tooth and nail to recover from a crash which was not the fault of Spain. France has also helped the bloc recover to its best levels since the Eurozone debt crisis. By the end of 2018, I predict one euro will be worth as little as £0.91. However, hold on to your hats folks, it could get very nasty indeed.
So do not follow the heart blindly into Brexit guys, please. Protect your family’s wealth, hedge your pensions and prepare for a little financial argy-bargy. There is going to be trouble my dears, as sure as eggs, is eggs!
Harriet & George could help you find a lucrative investment property, which will help you weather the impending storm. Below market property could be purchased for as little as €70,000. The time is now. Procrastinate at your peril.