As Theresa May prepares to brief her cabinet on the Brexit withdrawal bill, agreed in principle between negotiators from the United Kingdom and European Union, there is still concern over the economic impact that Brexit may have.
Experts have predicted a number of potential occurrences following the March 2019 deadline comes, ranging in severity from economic meltdown to potential growth. Some citizens have started stockpiling food through fear that Brexit will lead to immediate food and supply shortages, while a number of businesses have considered leaving the UK.
The Brexit process has been plagued by uncertainty. However, that will not change once a final agreement has been reached, or even when the UK leaves next year. According to a leading financial advisor, it will be at least a decade before the UK finds out whether it has made a good or bad decision by voting to leave the EU.
Nigel Green, CEO and founder of financial advisory organisation deVere Group, warned:
“Make no mistake, this is not the end, but the beginning of the Brexit process.
“We will not know if the deal is good, bad or ugly for another 10 years. It will be affected considerably by events still to happen.”
Opinions on Brexit are split down the middle, as shown by voting figures in the 2016 referendum, in which the UK voted leave by 52% to 48%. According to Green, it is this close divide that could see certain issues around Brexit drag on.
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“The ‘certainty’ that’s craved by the markets and business is likely to be short-lived as huge swathes of voters – fuelled by Eurosceptic politicians and other influencers – will not accept the deal, seeing it as politically unsustainable, which will have a destabilising effect and potentially lead to an ongoing constitutional crisis.”
Brexit uncertainty: A warning to investors
While Green doesn’t believe that the impact of Brexit will be quite as immediate as many have predicted, the financial expert believes that investors should still be wary of investing in the UK ahead of Brexit.
In order to safeguard against any potential fall in UK assets, Green believes that investors should begin looking further afield, investing in assets such as global stocks, bonds and property.
“In this environment of short, medium and long-term uncertainty, if you’re serious about creating, building and safeguarding wealth in the next decade, you need to think about global opportunities,” Green said.