As hopes of resolving the eurozone crisis dim at the EU summit in Brussels, the world’s largest independent financial advisory firm insists the ongoing situation is presenting possibilities for savvy investors.
Nigel Green, chief executive of the deVere Group, explains:Â “The euro crisis is one of the greatest risks facing the world economy and, with EU leaders still at odds on how to move it forward, it seems likely to continue for some time yet.
“But from great risks come great opportunities – and the extraordinary economic environment created by the euro situation is an example of this.
“With the harsh political and media spotlight on Europe, perception of risk has been significantly heightened and, in some instances, distorted by a herd mentality.
“Many investors are only considering options such as government bonds and are selling-off other assets, meaning equities are generally becoming cheaper.
“With this in mind, for those who are willing and able to take a long-term view on their investments, there are lucrative possibilities to be had as a direct consequence of the crisis engulfing the eurozone.”
However, with events unpredictable and fast-changing, Mr Green says thorough independent risk analyses must be undertaken.
He says:Â “In these unprecedented times, risk identification needs to go much further than it did previously.Â For instance, the economic crisis may affect product demand, certain commodity prices, workforce continuity, and social peace.Â A strong identification of the risks is, therefore, more crucial than ever to successful investments.”