From Southbank Private Briefing (Great Britain)-
Brexit was a big issue in this week’s editorial coverage. Stockmarkets crashed, along with the pound, in the day after the referendum results. They subsequently recouped most of their losses. This gave more credence to our argument – that the entire debate was mostly political theatre.
The vote seems to have real consequences for some politicians. Boris Johnson announced he would not run to become prime minister. And David Cameron said he would step down.
But for financial markets, the entire story may be a media frenzy in a teapot – with little real-world consequences, as political deadlock prevents any sudden changes, and no real crisis occurs. Already, the US media is reporting that the event will have no effect that side of the pond. But the general line is still that Brexit will send the UK into some kind of recession.
Of course, Britain is one of the few European countries that is actually hiring – and growing. France hasn’t created any jobs since 2002. And banks in Greece, Spain and Portugal are still basket cases. Germany just had to block Italy from going against EU rules in order to bail out its banks.
And Nigel Farage went on a victory lap at the European Parliament, shoving the results into the disgusted faces of the EU ruling rabble.
Before the vote, Charlie Morris called a major buying opportunity in British stocks, regardless of the outcome. It looks like he could be right…