Tuesday, September 6, 2011

Consequences of a Euro break Up by UBS

UBS has written a 21-page report discussing the potential impacts of a Euro break-up.

It explains why the Euro should not exist as it is structured today and "simulate" break-up scenario (weak country leaves, strong country leaves...) and try to anticipate the possible consequences.

To conclude they answer the question "How should investors invest in case of a Euro break-up?" The answer:

The only way to hedge against a Euro break-up scenario is to own no Euro assets at all.

You can read the report below.


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