My article on this earlier. Brexit and UK property market – Wall Street journal. It has ended. Nope I am not talking about the UK economy. I am talking about the referendum. It’s over, the people have voted and the UK will exit European Union. By the way, it will not be happening next week. It may happen within the next 2 years, from the date that a notification is sent to the EU HQ of the intention to exit. There would be much more negotiations before anything is cast in stone. I do not think both EU or the UK favours any huge and radical sudden changes. For the sake of both sides, better be rational. It’s just a decision and the effects are not likely to be felt for years to come.
Then, are the stock markets down? Why is the Pound so volatile and down the most since 1985? Come on, the expectations would be that the UK would lose access to its largest market, the EU. Plus the financial markets are always short term anyway. By the way, that’s how the “investors” in these financial markets earn some pocket money. If the market does not move much, I don’t think there’s a need for stock markets. Haha. Then why is the Ringgit down even though the UK is not even a top 10 trading partner to Malaysia? As usual, when the market is uncertain, investors prefer ‘stronger’ currencies. Ringgit is not considered a major currency, thus it will keep moving when the market moves.
Some friends said, better buy Pound because it is down by so much. Yeah, that’s a possibility but as long as it’s just to ensure a cheaper holiday when we visit London soon then it’s ok. Do not buy huge amounts of foreign currency as a form of diversification. It’s just too volatile and seriously, can anyone predict what will happen to the UK in the next 2-5 years? Just look at the movement today, absolutely nothing has changed, just a vote. Yet the movement down has been extremely sudden for the Pound and the stock market. Perhaps the parents with kids in London would be very happy.
Happy reading and understanding.
written on 24 Jun 2016
next suggested article: London property market is now risky?