Brexit

[BigL]

Early results show leave. Nikkei down 1000, pound at its lowest against the dollar since 1985, Dow futures down 600.

Could be an interesting day in the markets tomorrow. Got my hedges in place, took some profits today, and have cash in hand for the discounts.

[boomerball]

So, other than just spooking everyone (a bunch of uncertainty), what is really the impact for the global economy? Why will the people across the globe need fewer widgets now? Just trying to understand why the value (ability to make money) of US based companies drop so much in response to this......

[Gunnyart]

So what would be a good bet as a discount?

[BigL]

So, other than just spooking everyone (a bunch of uncertainty), what is really the impact for the global economy? Why will the people across the globe need fewer widgets now? Just trying to understand why the value (ability to make money) of US based companies drop so much in response to this......

Mostly a bunch of uncertainty. This is causing one of the world's largest unions lose one of their contributors which will now cause additional burden on countries like Germany when the Greece's of the EU can't pay their bills next time.

Also it will cause things like the UK needing to set up trade agreements with those countries.

The pound is also one of the world's reserve currencies so some temporary destabilization there causes additional panic. Expect the pound and euro to weaken against the dollar. US companies that do a lot of business in Europe could be hit as currencies fluctuate. For example if the pound drops against the dollar then companies like NKE don't make as much on the sell of shoes over there after it is converted back to dollars. A strong dollar to the currency where goods are being sold is a headwind for the US companies in those countries. The UK and EU are huge markets for a lot of US companies.

Companies like VZ, HD, LOW, or utilities like AEP, D or AWK may drop because of a general market sell off but don't have any exposure to the EU and should recover the quickest. Look for these US only type companies in a sell off and could be good times to buy good quality American based companies at a discounts.

So what would be a good bet as a discount?

Depends on the company. I look at both what the drop does to it's P/E ratio and what the technicals were doing before the drop. I'm probably going to look for ~8% drop (may take a few days) in companies that do a lot of business in Europe and ~5% in US only based companies before getting serious about my entry price.

[tradtiger]

Commentator just called this the most momentous event in Britain since 1642, when Oliver Cromwell and company dethroned and killed the king. With all reporting areas in, Leave has 51.89% while Remain has 48.11%. That's over 1 million votes difference in favor of Britain leaving the European Union.

[Black Ice]

So where do I put my $4?


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[8mpg]

So it passed...and their prime minister announced his resignation. Very interesting to see the voice of the people actually working.

[El Forajido]

The people have spoken "clearly".

[Tony Pic]

As a American...I applaud England's decision. Independence is a good thing. I think they do not want what is happening to the rest of Europe to happen to their country.
Now...to only get rid of that Muslim mayor.

[cosmiccowboy]

This is a great buying opportunity in the stock markets. The world will keep turning.

One side effect is that the Dollar will spike which means oil will fall pretty hard today which doesn't help a lot of guys on here.

[scubasteven25]

This is a great buying opportunity in the stock markets. The world will keep turning.

One side effect is that the Dollar will spike which means oil will fall pretty hard today which doesn't help a lot of guys on here.

Exactly this! Locked in profits yesterday, buying today.

[ultrastealth]

Good for the Brits. It's been a long time since they found their mojo and did something that makes sense. The real question now is how many more are going to jump off of the Euro Union, the sinking ship of Europe. Merkel seems intent on allowing Greece and the other weak sisters to grind Germany into a third world ***** hole.

[James]

I am ****ed. Just don't know exactly how bad yet.

[kerrbow]

I believe that precious metals like silver and gold will skyrocket in the near future. Always has when their is instability in the economies of the world. I would pick up physical silver and gold if you are able, not paper gold. Just my thoughts and opinion.

[cosmiccowboy]

Good for the Brits. It's been a long time since they found their mojo and did something that makes sense. The real question now is how many more are going to jump off of the Euro Union, the sinking ship of Europe. Merkel seems intent on allowing Greece and the other weak sisters to grind Germany into a third world ***** hole.

Exactly. The German people won't put up with Merkels insanity forever. They are supporting half the EU while getting flooded with immigrants. I give it five years at the most before the EU completely implodes.