Eight geopolitical dangers looming in 2016
15 Dec 15
Geopolitical risks are inherently difficult to predict, but here are some of the key issues GAM investment experts are watching in 2016.
Lack of growth in Europe
“The growth crisis afflicting Europe remains unresolved, and is potentially being made worse by the migration crisis. On top of that, the euro crisis remains far from being solved and investors need to be aware of that. Many countries still do not comply with the Maastricht treaty regarding new budget deficits, including France, Greece, Italy, Portugal and Spain. Thanks to loose monetary policy, debt levels are constantly increasing, while GDP growth remains weak. For the moment, only the very low interest rates prevent many of these countries from becoming debt-distressed situations. The migration crisis will increase the EU’s debt levels further, whereas the hoped-for contribution to economic growth remains to be seen.” – Oliver Maslowski, portfolio manager, European equities
Tags: GAM | Investment Strategy
