The Brexit and the tense relations between Brussels and London have led to a time of widespread uncertainty in European markets. Furthermore, this threatens to cause a difficult summer in the stock markets, which is similar to what happened in China last year.
Binkinter has attempted to predict the potential economic impact caused by Brexit in Europe. The conclusion is that the output of the United Kingdom represents a much less disaster than the one portrayed in media as well as among the population.
In any case, the analysis does recognize that the second half of the year will be very complicated in European stock markets, especially in an environment where fixed income presents negative returns. Bankinter estimates that the IBEX will close the year at 8,262 points.
After Brexit happened, Bankinter recommended to take defensive positions and seek safer assets. Faced with a scenario like the one presented for the second half of the year, experts recommend taking an even more defensive position in asset portfolios. Bankinter recommends reducing 5% of the exposure to equities and recommends to allocate part of the savings to safer assets like gold and real estate investment, as they are no subject to fluctuations in the world economy. Something you can do safely with Housers.
The bank expects Brexit to have “a negative weight on corporate profits and therefore on stock valuations.”
According to Bankinter, commercial real estate will still be recovering thanks to the increasing flow of investment into Spain, low interest rates and low inflation. Therefore, they recommend investing in these assets will have a favorable scenario in Spain today.