What Brexit Means for the Commonwealth

29.06.2016 • The Economy

From Revolutionary Tech Investor (Australia)-

Well, long live Mother England! Perhaps there’s more life in ol’ blighty than I (Sam) anticipated.

Actually, not really. If you have a look at the voter turnout you’ll see that older middle England decided to give two hoots and made their vote count. Meanwhile younger England talked the good talk, but in the end couldn’t be stuffed turning out to vote. That’s a democracy for you…

Ironically, the people most affected short term by Brexit will be older middle England, the working class and lower socioeconomic areas…those that voted to leave quite definitively. If only they knew it was about more than immigration.

Anyway, in or out, at the end of the day ‘out’ will probably serve the UK better. Short term, as you clearly see, the knee jerk reactions around the world are, well, knee jerk. The uncertainty of change is what’s sent fear through the world’s markets.

It sent the ASX, NASDAQ, NYSE, LON — everywhere — into a nosedive. And the pound into a spin. Calmer heads will prevail in the coming weeks, because at the end of the day this has little impact to Australia’s economic situation long term. If anything it may draw the UK and Australia closer, as the UK needs all the friends they can get right now.

What this all boils down to is that right now may well be the best time to buy stocks since early 2009. If you can stomach the rollercoaster and volatility then you’re getting lots of stocks at a big discount. The UK might struggle on for a year or two while this all unwinds and continues to inject uncertainty into markets, but as the dust settles, you’ll quickly see that change isn’t always bad. In this situation it might even be for the greater good.

And as for the EU? Well this might trigger the total collapse of the EU and a return to countries looking after their own problems. Again, not necessarily a bad thing either. If you’re a believer in centralised control, then it’s clearly the end of the world. But it’s not. There’s a saying the Brits themselves always profess to abide by, and which I think is incredibly applicable in this situation. ‘Keep Calm and Carry On.’

-Read more at portphillippublishing.com.au (paywall) (English)-

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