June 24, 2016: British Independence Day !
So….once again all the “experts” were wrong. THEY said Britain would stay, but THE PEOPLE said, uh, no thanks, we’d rather govern ourselves. So the markets reacted rather severely to the “leave” vote on Brexit, at least for the short term. But are the so-called experts really correct that this will be bad for the British economy and British investments? I don’t think so.
If you followed the advice of the global financial firms you were dragged into the two huge market crashes over the past 15 years – the Tech bubble burst in 2001 and the financial collapse in 2008. You also may have said goodbye to 40-50% of your equity investments each of these times, maybe more. Do you really think that it makes sense to listen to these folks now? Is your financial advisor parroting the “in the know” thinking of Wall Street? Still want to listen and follow his/her investment advice?
Well, not me! I think for myself, thank you, and I think Wall Street south-sayers rarely get it right and that following them makes no sense at all. The British people finally had enough of being told what to think and said so with their vote. It’s about time we did the same.
Here’s my take on how this vote can affect our investments. This week I will begin a deeper evaluation of money managers with a history of success investing globally and in Europe specifically. I think the “consensus” that being independent in Britain is a bad thing is very likely just flat out wrong. IF equities continue to drop due to this vote I think it may present some great opportunities for long term investors. I plan to be ready for this opportunity.
To be honest, I’m tired of financial and political elites demanding the rest of us do what they say “or else”. It’s about time some country stood up and said “or else WHAT?” These elites need us more than we need them but they act like it’s just the opposite. Why would a successful country wanting to govern themselves again be a BAD thing economically? I just don’t see it.
So I say “good for you, Britain”. I think you’ll do just fine without unelected bureaucrats in Brussels running your economic lives. And heck, I’m not above taking this opportunity to look for investments that might benefit from this as well.
The “New World Order” may have just taken a crushing blow, but the British economy? Nah. Before this vote they were in the same slow world economic growth dilemma as the rest of the world and now, after the vote, they still are.
The views expressed are those of THOMAS HAMILTON and not necessarily the opinion of LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
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