If you haven’t yet seen the news this morning, the UK voted to leave the European Union (EU) yesterday (results came out late last night). We’re seeing this type of movement across the globe right now. The vote to leave is a global middle class that is frustrated by ever growing wealth inequality, stagnant wages and rising costs. Governments have sat back for far too long hoping that Central Banks can patch over the issues. I believe this will go down in history as the beginning of the unravel of the current structure of the EU and the Eurozone itself (the Eurozone is the monetary union that uses the Euro currency; it’s a smaller subset of the EU).
I was up late last night following the voting results, tracking market movements and coming up with my game plan for today. I’m expecting a very busy day of trading. It hasn’t even been one day and Central Banks are already stepping in to intervene (see here, here, and here). The fact that markets can’t even handle one day without intervention tells you a lot about the current state of markets. Only time will tell how long the volatility will last but I’m expecting some good buying opportunities.
-Nick