Remember where you were this afternoon, because it is a rare history making day. You see, the result of the UK referendum has revealed a majority of British citizens want to leave the EU.
Today the stone was dropped in the pond. What comes next are the ripples through world financial markets.
Already we have seen the British Pound massively sold off, and the Aussie has taken a pounding too. This is the knee-jerk reaction to uncertainty as most commentators, ourselves included, believed the UK would stay in the EU.
In any event, all eyes are now on the next trade session in the UK and the US (overnight our time). Then in the months ahead the question to answer is ‘what will this mean for trade and jobs?’
Strap in! The next few weeks are going to be volatile as markets are uncertain. The ride will be bumpy.
Have a great weekend.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks for the update Steve.
Looks like the tide is starting to go out.
Not a good time to be Naked!Interesting times ahead. When this all started to happen I also believed that the the Brits would not leave the EU, but the more and more I spoke to friends who are living in Britain both (expats and lifers) the more and more it became that I thought that they would leave the EU. The biggest complaint I heard were the social issues. Many Brits have experienced the crime rates in their communities rise, they became more and more zenophobic (especially with all the fear around terrorism) and mostly they believed that their everyday lifestyle was being undermined by elements they could not control. For many Britons this was the first chance they have had to say what they want to happen in their country on these social issues and so many of them took the chance to have their say in order to get change.
It will be mayhem for the next couple of years as the Brits wrangle their exit from the EU. Short term see both of the UK political leaders to go as a direct consequence of the result and market turmoil on the US and Euro markets Friday local time.
Medium to longer term (after the formal withdrawal process has been concluded) will be of more interest as to what deal the UK can secure. One thing of note is that Scotland and Nth Ireland votes to stay while most of England voted to leave; Gibraltar voted to stay with a 95% yes vote.
Will be interesting to see if the Square Mile (London’s financial district) can survive being outside the Eurozone.
Hi Steve
Succinct post.
It seems that your post was so impressive, someone has already decided to ‘lift’ it and use it as there own on FaceBook via a member of the Barefoot Investor Club.
I have taken a screen shot, but can’t post it here?? I have also replied to the post suggesting the BF member credit your work.
Not cool.
I’ve already had the thumbs from others.
Cheers
eMark
Just woke up here in NYC to see all of the mess…..going to be an interesting day.
Lol does this mean Shorten is getting the nod on the 2nd of July and Trump in November….?
Yes good news all-round and glad my vote counted.
Certainly going to be interesting times ahead.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ironically I had a great conversation with Staggs over the weekend in Healesville on the nature of Black Swans, and how they by definition come from left field.
“Grexit” was (to my mind) an economic inevitability that was not materially consequential beyond the precedent it would set for the EU. It would annul the guiding principle that the EU was a political project designed to prevent the bloody continental conflicts of the past, and that membership was permanent and irrevocable.
Greece is tiny. It is a basket case. But everyone bent over backwards to avoid its ejection simply for the dreadful message the event would send to the world about how impermanent and fragile the entire arrangement was.
We’ve now just had the second largest economy in the Union, which is in no such financial distress, say in no uncertain terms that it wants out. That matters.
If you look at a map of the UK districts and how they voted, that also matters. The Scottish referendum now takes on another context, who knows what it means for Northern Ireland, and it shouts from the rooftops to all other separatist EU factions that rightly or wrongly, this is a very real option. The Rubicon has been crossed.
The European project is now, as it was always destined to be, on its knees. I hope that history in this instance neither repeats nor rhymes.
what do you think the property in uk
I remember when UK joined the EU, doom and gloom in Australia. Exports of our primary produce (wheat, wool, beef, lamb, sugar, apples to name just a few) not to mention manufactured goods would cease and we would have to find a new market.
The door has just opened, get out there and sell our cheaper better quality goods to the UK. Ever tried to buy a cheap steak in London?
Think outside of the square – Live cattle / sheep by air, non-cold-room organic apples by air,Could this signal potential bargins in the British real estate market with added currency play?
Wadez, I’m watching very closely. My whole portfolio is based in London and now I’m back in Aus earning AUD with some ready to invest.
Will need a little time to see how things are going to play out. Also the GBPAUD held up relatively well so far. If I’m going to put money into London with the certainty ahead I’ll be looking for the GBP to drop to 1.50-1.60.
London as a whole held up well in the GFC but there were pockets of distressed sellers and a not many buyers other than smart money from Asia and Russia and property investors that could get their hands on finance which dried up considerably.
Freedom of movement appears on the cards as far as a trade deal goes so my hope is the city can come out of this not too beat up. The leave camp has backflipped on a number of promises including immigration which is one of the fundemental drivers in the uk market.
For the record I voted remain but now support the process playing out. Bumpy ride ahead.
Where there is problems, uncertainty and doubt, there is opportunity.
Mike
Email Me
You must be logged in to reply to this topic. If you don't have an account, you can register here.
