I’m sure you have already heard all about it but here it is once again:
The United Kingdom held its referendum on whether they should remain or leave the European Union last week. The result has greatly impacted the economy and has its consequences. Even though nothing has actually happened, confidence has been shaken and the markets are in yet another event of turmoil. The pound fell more than 11% against the US dollar after the results were revealed. Barclays is now worth 18% less and the RBS stocks fell even lower at 23%. Prime Minister David Cameron has abandoned ship, The UK are now faced with having Boris Johnson as its leader. And the only one that seems to be laughing is Nigel Farage.
What does this actually mean?
Well, hard to say really. It’s difficult to predict how it will all pan out for UK and Europe. Right now when following what the mad Boris Johnson and many other Tories are saying it seems that they are backtracking and not really prepared to go through with this. Nicola Sturgeon has also said that if must, she would veto the exit to protect Scotland’s interests. Technically she totally could. Also the parliament could overrule the referendum. Now of course this would make a lot of people very angry. On the other hand a 52% isn’t exactly a huge win. Also in the aftermath a lot of people have come out saying that they deeply regret their leave vote. Some thought their vote wouldn’t matter, some took it as a protest vote. Some don’t like immigrants. Some genuinely believe that the EU is holding Britain back.
On top of this a lot of young people who are currently abroad didn’t have a chance to vote. There is a ridiculous law in place that brits living and working overseas need to have been on the electorate register for over 15 years to qualify for voting overseas. That means you need to be at least 33. So yet again Britain’s youth have no say in their future. If they had that option could the result be very different? Enough about that though. Let’s see how this might impact the economy and what you should know tradingwise.
Both Boris Johnson and Nigel Farage have resigned. As Christopher Waltz eloquently put – the head rat always abandons ship first. This is a true disgrace. People who caused this, campaigning with their lies, promising a better Britain have now fled. This isn’t going to negatively impact them or their families. It’s the financially worse off that will take the hit. Would’ve expected them to stand up for what they claimed to believe in however they decided to run like cowards and leave this mess for someone else to be dealt with. What noble men…
Taking advantage of the markets
Huge economic events like this create lots of opportunities for trading. With the economy shaken comes great volatility and you can make a lot of money with volatility. Yes, of course, you can also lose a lot of money with volatility. There are always two sides to a coin. Tradingwise I would recommend keeping a close eye out for big announcements and news on this topic. These will give you awesome entry points to trades. Buy low, sell high. The same applies to cryptos. Whenever the economy is down, cryptos also thrive. After the announcement of the referendum results Bitcoin too did a jump gaining $50 in just a few hours.
We’re all probably keeping our breath a bit wondering what is going to happen next. Whether Britain leaves or not, the world will still keep turning. The markets won’t stop either. Personally I hope they come to their senses and try and sort this political point scoring situation fast. There are great arguments from both sides. There have also been huge lies told by the leave campaign, so there we are. The EU seems to have enough of Britain’s moods and urges it to get out. Germany is urging people to just get along. Their relationship could be summed up as – it’s complicated.
Will this end in a disaster for The Great Britain? Will Scotland and Northern Ireland leave her? Or will they patch it up and act like nothing ever happened? Will England sail alone to greatness and render the EU pointless, encouraging many others to exit the union too? There are so many possible outcomes and it’s rather hard to say what the future brings.
I will be keeping a close eye on the events and bringing some nice profits home with it.