Cumbria should avoid the worst of the fallout if the problems in the eurozone lead to another banking crisis. The fact that we are not as reliant on the financial services sector as places like London will stand us in good stead. However, any further deterioration in the eurozone debt crisis, particularly in Italy, could trigger financial meltdown on the same scale as the crash of 2008.
The general feeling seems to be that Cumbria is still doing okay; the problems in Greece and Italy are affecting share prices and consumer confidence but probably aren’t yet doing any lasting damage. However, Italy could be a turning point in this crisis. If everything goes sour there, who knows what might happen?
At the moment things are difficult with the economy and people are a lot more aware of the risks involved in some investments. Things have changed massively since the 1990s when virtually anything you put money into seemed to go up. The crashes of 2002 and 2008 have made people a lot more cautious. People do tend to invest at the wrong time, though – when the market is at its peak – whereas actually times like this – when the market is depressed – could present a better opportunity. The problem now is that interest rates are so low for cash that you’ve got to look at alternatives to get any kind of decent return, but the key if you’re looking at the longer term is to have a diverse portfolio.
For more information or to book an appointment to discuss your individual requirements, contact Ian Sneddon.