Well into the early hours of Friday morning Great Britain was tallying the votes of a referendum that would shape the world going forward. Would they stay in the European Union or would they say ‘enough is enough’ and vote to leave it. With the results tallied (and much to the Wall Street’s surprise), Great Britain made the choice to leave the European Union by a count of 52% ‘leave’ to 48% ‘stay’.
Wall Street and world investors spent all of Thursday buying up what they could based on the flawed assumption that Britain would stay in the EU, honestly I have no idea why they felt so strongly about this, seems fool hardy to put all your eggs in one basket when the outcome is dependent on a vote. ANYTHING CAN HAPPEN WITH A VOTE. Some of us (I’ll take the credit) thought the leave was a real possibility and took the gains and bowed out of the market yesterday. Of course I could have left gains on the table but I’d rather be cautious and take the gains I’ve already got. The US markets aren’t open yet as of this writing but futures have plummeted and foreign markets have tanked, don’t be alarmed, they WILL bounce back. This drop is an unfortunate result of Wall Street getting it wrong, there was no reason for them to think GB would stay in the EU but for some reason they all did, now the market needs to correct, I expect at least a 3% drop in the Market today, it will need to make back the undue gains from yesterday and then account for the exit which most people thought would result in a 1.5% decline (or 1.5% gain if they stayed). I can’t stress this enough though, once this all shakes out we will be fine.
The Brexit might hurt the remaining members in the EU (they brought it on themselves though) but it will strengthen the US, The UK and China, it will also put the last nail in the coffin of the Euro experiment to unseat the Eurodollar as the world currency. While Britain never dropped the Pound for the Euro (smart move) this will definitely have a huge effect on the Euro’s global valuation, good time to travel overseas if you’re an American (finally).
Great Britain voted to leave the EU because a majority of voters felt that the EU no longer aligned with their best interests. It focused on open borders, globalization and a member country’s cultural ambiguity. Britain voted to preserve their identity and make their nation strong again, I admire the British people’s resolve and bravery in the face of world ‘leaders’ like Obama threatening them if they chose to exit. The British people shoved amazing resolve on Thursday, they will not be bullied by people with agendas.
I hope the US looks to the people of Great Britain for guidance in our November election, a vote for Trump is a vote for nationalism (leaving the EU), and a vote for Hillary is a vote for globalism. The British people woke up to the negatives of putting others before your own country, it’s time we in the US did the same – America First people.