BREXIT is not a Cracker
So now doubt you’ve heard the term “Brexit” in the past few days. You’ll hear a lot more about it today and over the weekend.
The United Kingdom did what it probably should have done a long time ago: established its independence from the rest the continent. I’m glad they finally learned something from their former colonies in America.
So why are markets down today? In a word, UNCERTAINTY. The status quo has changed. Contracts will need to be rewritten. Treaties will need revision. Tax laws will change. THIS IS NOT NEW to markets and this too shall pass, rather quickly I might add.
If markets hate anything, it’s uncertainty. But as we’ve seen time and again, markets tend to find a way. There will be clarity in time. Contrasted to what transpired in 2008, this bit of news has a lot of potential upside going forward.
For a little history that puts this entire move in perspective, I’m including a link to an article from the UK Daily Mail in 2007. Back then, there were many who understood that the EU was not working out for Britain.
Remember: it is never a good time to panic. Historically, markets move upward faster right after they move downward.