We are in danger of losing the big picture with regard to Europe. The #Brexit vote has taken the attention of the world, rightly so, however the value of the UK market has the potential to stabilise, if a little lower than before the vote. The £ is now stable for a few days. And will float around this level for a while. The BOE is on the game.
In contrast the problems of the European Union go on, Greece is still suffering, and Spain is in political turmoil even after another election. The French have woken from a long sleep over the reforms to the labour laws. The Mass migration has not gone away.
Austria has moved to the political right removing the usual support from Germany, Germany being the healthiest economy will have to deal with the loss of the UK almost alone.
In short there is still much going on within the EU that is not positive. Markets are going to remain volatile for a while yet; the question, what the next crisis will bring. I do not think the negotiations between the UK and the EU, once they start will cause a mass exodus of states, not all have the where with all to pull it off. So we are left with a long list of other problems looming on and over the horizon.
Ask not what #Brexit can do for you but what you can do for Brexit! Fifteen executives from Lloyd's Bank just set a tremendous vote of confidence in their bank and the UK economy by buying almost 1 million shares between them. Headlines today stated that Lloyd's executives buy 829,000 shares in post-Brexit show of confidence. But like the English weather, it doesn't stay sunny for long. Preceding that announcement Lloyd's came out with their less optimistic news that they would be laying off over 600 employees as a cost cutting program (any connection to Brexit, maybe?). What's the upshot? If you are worried about the pound and the UK economy lets all start buying British goods! One area sure to see a boost is foreign tourism in the UK. As the pound weakens foreigners get more bang for the buck, that will eventually bring in increased revenues to the economy. A weak pound does have its benefits!
Brexit and Hedge Fund Strategies
We are in danger of losing the big picture with regard to Europe. The #Brexit vote has taken the attention of the world, rightly so, however the value of the UK market has the potential to stabilise, if a little lower than before the vote. The £ is now stable for a few days. And will float around this level for a while. The BOE is on the game.
In contrast the problems of the European Union go on, Greece is still suffering, and Spain is in political turmoil even after another election. The French have woken from a long sleep over the reforms to the labour laws. The Mass migration has not gone away.
Austria has moved to the political right removing the usual support from Germany, Germany being the healthiest economy will have to deal with the loss of the UK almost alone.
In short there is still much going on within the EU that is not positive. Markets are going to remain volatile for a while yet; the question, what the next crisis will bring. I do not think the negotiations between the UK and the EU, once they start will cause a mass exodus of states, not all have the where with all to pull it off. So we are left with a long list of other problems looming on and over the horizon.
What’s In Brexit For You?
Ask not what #Brexit can do for you but what you can do for Brexit! Fifteen executives from Lloyd's Bank just set a tremendous vote of confidence in their bank and the UK economy by buying almost 1 million shares between them. Headlines today stated that Lloyd's executives buy 829,000 shares in post-Brexit show of confidence. But like the English weather, it doesn't stay sunny for long. Preceding that announcement Lloyd's came out with their less optimistic news that they would be laying off over 600 employees as a cost cutting program (any connection to Brexit, maybe?). What's the upshot? If you are worried about the pound and the UK economy lets all start buying British goods! One area sure to see a boost is foreign tourism in the UK. As the pound weakens foreigners get more bang for the buck, that will eventually bring in increased revenues to the economy. A weak pound does have its benefits!