Now the Brexit vote is over, the sterling will suffer yet another blow. With the Leave vote winning, we have seen a sudden loss of confidence in the Pound.
So whoever wins the election on Saturday inherits an economic time bomb. That they don’t know it doesn’t make it less so.
When Deutsche Bank goes under, which is likely to happen once the European contagion takes off, I expect massive bloodshed across financial markets.
When markets ultimately collapse from the insiders’ manipulation, central bankers are going to go from being ‘deified’ to ‘vilified’. And rightly so.
The global economy is like a child. It uses events, such as Brexit, as a play toy. However, just like a child, the global economy quickly gets tired of playing with the same thing over and over again. Just three…
The real question now after the EU Referendum, not just for the UK but the financial markets as well, is how to construct the exit plan.
European banks were hit the hardest, some dropping as much as 30% two days after the vote. Investors rushed to gold, sparking a 6.4% rally in the spot gold price, to US$1,336.66 an ounce. But right now the carnage seems to be settling.
Quality stocks can’t keep you insulated from crashes. But they do rise again after periods of negative volatility. This makes any market turbulence an opportunity for investors.
Share markets around the world are nosediving. Not because we are on the verge of an economic crisis, but because they dislike uncertainty.
The Brexit has caused havoc across continental Europe. Financial markets are shocked. But this isn’t a time to panic.