Britain Financial Sector
- Four Ways to Profit From Britain's Surprising Post-Election Rebound
- British Companies Becoming Takeover Targets for Cash-Rich U.S. Companies
- Great Britain – The "Rust Belt" of Global Finance
However, the new government that took office in May has prompted me to reconsider my investment viewpoint. The new coalition has made progress on both of these once-worrisome issues.
And that means the British market is now one that investors should very carefully consider.
Let me explain...
While the U.S. recovery is losing momentum, the U.K. recovery is nonexistent. Companies across the pond are struggling to stay afloat and the British pound has fallen by about 25% against the dollar in the past two and a half years, leaving British firms vulnerable to American intrusion as takeover targets.
That fact was highlighted earlier this year by Kraft Foods Inc.'s (NYSE: KFT) controversial takeover of British confectioner Cadbury PLC (PINK: CDSCY).