BREXIT: UNITED KINGDOM TO LEAVE THE E.U.

24 June 2016


From Mike, our Resident Brit
160624 Going It Alone

 

Hi Everyone,

You will be waking to the news that the UK has voted 52-48% to leave the E.U. The Prime Minister has announced that he will resign and a replacement will be in place by October.

There are a number of implications arising:

1) It is highly likely that the UK will “break up” into individual countries given that Scotland voted by a large margin to remain and would not wish to be dragged out of the EU by the UK as a whole

2) It is possible that Great Britain will also break up as Northern Ireland has voted in a similar manner to Scotland.

3) The value of the pound has fallen dramatically overnight (so far that the UK is no longer the 5th largest economy in the world)

4) The vote has triggered the demand for similar votes in the Netherlands and France

5) The Stock Market has dropped significantly since trading started this morning

We will have to wait and see whether the fall in the pound and stock markets stabilises in the short term.

I believe that both Britain and Europe will be significantly worse off as a result of this vote.

***

160624 Brexit

What do you guys think? And what of the similarities in Vote Leave rhetoric to the Trump campaign in the U.S.?

It’s a (brave? scary? exciting? depressing?) new world.

We’ve left some links below for you to take a read. The articleswill be updating frequently as news continues to pour in.

Give us an email or a call to discuss what this may mean for your portfolio. At present, uncertainty rules the morning. But thankfully, not panic.

The Firstline Team

 

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