Shutdown Concerns Build Up 😓 Europe’s Hot Property 2019 🏭

by | 2 Jan, 2019

 

1. Shutdown Concerns Build Up  

As the partial shutdown over funding for President Trump’s Mexico Border wall creeps into its second week, economists are beginning to look into the potential consequences.

For now, a two week shutdown over the holiday period isn’t exactly a catastrophe, but should the feud drag on towards the end on January, we may start to see the effects more clearly in the economy. Yikes!

With markets already teetering on a knife’s edge, a lasting stand-off would put a sizeable dent in consumer and investor confidence at a time when stability is desperately needed. 800,000 workers’ paychecks are currently being held ransom by Trump’s border wall demands along with federal funding for loans and tax refunds.

By the end of January, a prolonged shutdown would shave an estimated $8.7 billion off GDP and 0.2% off Q1’s economic growth figure. In addition, delaying important data releases, such as retail sales, consumer spending and GDP could cause further weakness and uncertainty across the battered markets.

Investors will be watching the epic showdown closely for signs of unity within the newly-divided House of Representatives, hoping desperately for some common ground. And rightly so! The clock is ticking.

 

2. Europe’s Hot Property 2019

And no, its not on the French riviera. Industrial warehouses are are on the up-and-up as online retailers, such as Amazon and other regional suppliers, clamour for ‘shed space’ to shield their business from the possibility of a no-deal Brexit.

With 87 days to go, and no deal in sight, UK companies with business in Europe and vice versa are prepping for doomsday by stockpiling inventory across the border in anticipation of any delays that may affect business.

Many retailers with regional supply-chains are already feeling the pinch, but warehousing companies with broad exposure to export-dependent countries are reaping the rewards and may offer a relative safe-haven for investors amidst the chaos.

UK based property investment & logistics companies, such as Segro, are poised to benefit extensively from their wide range of strategically-placed warehouses across Germany, France, Poland and other EU locations.

In the event that the UK crashes out of the EU, safe haven assets may be few and far between. So with the clock ticking down, a little doomsday prepping for your portfolio may be a good idea too!

Today we are watching…

1. WTI Crude Oil (#wtioil)

Oil prices fell again this morning by more than a percent even after OPEC announced the high likelihood of more supply cuts to come later in the month. Investors still foresee issues of global oversupply that could continue to push the 40% decline even lower in Q1 of 2019. However, positive signs of stabilisation towards the end of Jan/Feb could bring investors flooding back. So watch this one closely its going to get interesting!

2. Netflix (#netflx)

Netflix has risen from the ashes thanks to its record-breaking movie, Birdbox, that racked up an impressive 45 million views in its first week, sending its share price through the roof. Having suffered extensively at the hands of the October-December sell-off, Sandra Bullock’s smash hit may be the X-factor that drives investors and subscribers alike into Netflix in 2019.

 

 

 

 

 

 

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2. Johnson & Johnson (#jnj)

Johnson & Johnson is set to post its earnings tomorrow and investors are rooting against them. Many analysts believe that even if the company has blowout results that beat expectations, the ongoing litigation against the company over allegations of Asbestos in its baby powder will rule the day. However, the markets have been known to pull some interesting surprises out of the bag. So watch this one closely!

 

 

 

 

 

 

 

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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