Home Business Insights & Advice Invest in the UK – avoid the risks

Invest in the UK – avoid the risks

by Sponsored Content
28th Sep 18 9:06 am

The UK is only the sixth largest economy in the world. But more importantly, it is in fact home to the largest financial centre in the world. London has always been a key financial hub for investors from all over the world, whether that be those trading stocks or those engaging in spread betting for example. The London Stock Exchange is actually the oldest stock exchange in the world and it lists more than 3000 companies from around 70 different countries worldwide.

The strength of the UK economy means that in many ways it is one of the safest places to invest, however this does not mean that there are not any risks that should be taken into consideration by any investor.

London does have one of the most advanced financial markets in the world, which is a major benefit and it makes the securities market a very stable place to invest, outside of the USA. Many of the world’s largest blue-chip companies are also housed within London and other areas of the UK, which also helps to reduce the risk of investment; in comparison to other locations throughout the world, who don’t have such a presence of large organisations.

There are some risks though associated with investing in the UK that need to be considered and avoided wherever possible. The fact that the UK economy is actually made up of more than 70% services, which is not uncommon with more developed countries; does however mean that even though technically it should provide more stability, it also increases the risk of problems arising due to the fast-moving commodity prices and consumer credit.

Due to the impending Brexit there is now a higher level of risk associated with investing in the UK than before. This has resulted in a high level of economic uncertainty and it could eventually lead to economic volatility, for example when Brexit was announced the value of the pound sterling drastically dropped.

There are many different ways in which you can look to have assets and investments within the UK to consider. You can simply have cash within a building society, which is probably the safest place for your money, however it will also offer the lowest potential for profit. There are also investment opportunities in equity within companies, for example buying shares within large businesses that are trading on the stock exchange; or you could look to invest in other forms of trading, where you don’t actually own any of the assets, like CFD trading or spread betting via City Index for example. Other options include looking at investing in property, which in general is seen as a sound investment; but there is always the risk that you could get caught in a market crash when you are looking to sell, meaning you are unlikely to get the amount you want or that you paid for your property, resulting in a loss of money.

In summary, there are numerous investment opportunities in the United Kingdom; which will suit everyone’s individual needs. The important thing to remember when looking at any form of investment is to do a full analysis as well as research of the appropriate market and environment; which will ultimately minimise the pitfalls and risks that one will undoubtedly encounter at some point. 

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