The onset of Brexit, while controversial in its homeland and abroad, is opening up interesting opportunities for American investors.
The consequences of pulling out of the Eurozone have been making themselves known for some time now, with international companies pulling up roots from London and other leading cities to relocate to the continent, talent being driven away from British companies, and uncertain projections driving down stocks. However, British companies have always made a strong showing on the world stage, with high demand, a positive perception of brand quality and desirability, and deeply rooted networks. Many UK-based companies are extremely well known; have high popularity, investor and customer-satisfaction ratings; and a reputation for world-leading expertise.
Dipping stocks and more vulnerable companies in the UK in the short term opens up long-term potential for American investors to get in the market and position themselves for significant returns in the future. “Buy low, sell high” is the investor’s mantra, and Brexit is pushing many shares into a predictable but likely temporary low.
The strong American dollar against the British pound sterling is another incentive to invest now, and not only are shares lower than ever, but you also get more of them for your dollar. That said, corporate investments involve significant sums, and you can save a lot in US to UK international money transfer by doing your research on exchange services and putting fintech (including some of those Brexit-shaken companies!) to good use on your behalf. Comparing fees and rates can save you huge amounts on your UK-based shares and corporate investments.
There’s also some pressure to invest sooner rather than later as investors around the world are watching and quickly snapping up deals. Already, the homegrown fintech sector is buzzing. You have to move fast to get in on the opportunities before all the good ones are gone. Some sectors are also less vulnerable to the knock-on effects of Brexit and won’t dip much further, or are already on the upswing. On the other side of the transaction, companies may be more interested in your buyout or significant investment if you can offer access to overseas talent that is rapidly drying up for them at home.
Some international investors are using this as an opportunity to snap up British-born competition, while others are strategically diversifying in either shares or corporate holdings and capabilities. While it helps to follow the political landscape in the news, you may want to consider a trip across the pond to get a feel for things directly. This is particularly important if you’re buying a business or majority or significant shares that will involve having a hand in business decisions. You’ll want to assess the climate on the ground and examine strategy and staff heading into this time of transition.
Brexit is offering an unprecedented opportunity to invest in leading companies at a bargain, but hopeful American investors will have to move fast and have their finger on the market to take advantage before the tide turns.