Brexit Passed, What does this mean?

“As I sit here writing this, procrastinating from preparing for a class I’m teaching bright and early in the morning, I can’t help but watch the time tick by realizing that each minute that goes by is one minute closer to one of the biggest decisions made by a nation’s people in quite some time – Brexit. If you’ve paid any attention to the news over the past few weeks or watched the markets you know that it seems like the world is ending, and for all we know it may very well be.

The vote, only hours away will alter the global economy one way or another. Great Britain, an economic and financial powerhouse will have to decide whether they would rather continue supporting underperforming countries like Greece or jump out of the airplane and hope that their parachute opens. The issue, the guy who packed Britain’s parachute had never done it before and really didn’t know what was happening. Therefore, by jumping, Britain isn’t just jumping out of the plane; rather, they are jumping out of the plane into the unknown and that is scary to investors. What makes it worse is that we can’t get that good of a read of how the vote is going to go based on the polling numbers – it’s a dead heat.

This matched with the potential of a rate hike this month, which at this point has become a secondary worry as it most likely won’t happen, has brought the markets to a screeching halt. We are seeing more and more investors moving their money out of the public markets and into commodities like gold and silver.

I wish I could sit here and tell everyone that it’s all going to be fine or that it’s all going to hell. Really, I just wish that I could give a solid answer for what is going to happen over the next months. However, I cannot. I don’t know what the future holds at this point. What I do know, is that at 2 a.m. Eastern Time on 6/23/16 the voter booths will open for people in Great Britain, and as of roughly 2 a.m. Eastern Time on 6/24/16 the final tally will be in and one of these great mysteries will end and the next journey will begin. Good luck out there and always invest smarter not harder.”

This is a short article I wrote the evening that Brexit was being put up to vote. At the time I had a gut feeling that the vote wouldn’t pass, and for most of the next day I was secure in this thought as the “Do Not Leave” vote stayed slightly ahead of the “Leave” vote. However, at around midnight of the day the results were posted the tides turned and “Leave” won.

 

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