Brexit was the Reset that Investors Needed

23.07.2016 • Investing

From Investor Passport (Argentina)-

Once a month we have a global analyst meeting where each analyst from our network presents its best investment ideas. At the last meeting we had last week, one of the US analysts presented a very interesting idea.

Today you I will briefly present…

The result of the vote in the UK was to leave the European Union, aka Brexit.

European markets suffer their worst day in years during the last month…

Italian shares fell 13%. German 7%. Spanish 12%. And across the world, including the Japanese were hit, falling by 8%.

The decision caused tremors around the financial world. And the significant drop in non-US markets pushed shares of foreign stocks to their lowest level in history, compared to US stocks.

If we rely on history, this implies a great opportunity for non-US stocks…

These actions have had a below average performance in recent years. The recent collapse, thanks to the decision of the UK, it is just an exclamation point.

Specifically, the MSCI EAFE index (which holds shares in developed markets outside the US, mainly Japan and Europe) rose only 13% over the last five years. The S & P 500 rose 74% during the same period…

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