Seems its the blind leading the blind when it comes to Brexit!
I don’t know about you but Brexit’s starting to feel a bit like a drinking game. Like when you’re watching a crap horror movie or old Star Trek episode and you have to decide if you think if a new character is going to live or die. Then you drink a shot for every one you get right. Simples.
I’ll show you what I mean.
Opening scene of Carnage Flick – a pretty girl sits chatting on the phone wearing an entirely unnecessary negligee? Dead!
Scotty and Captain Kirk decide to beam down to a planet with an unnamed colleague in a red shirt, you say? Dead!
Annoying ex-boyfriend character gets a less-pretty-than-the-heroine girlfriend? Dead and, oh, dead.
A property fund in London after Brexit? Oh, that’ll be fine… Who are we kidding? Dead! A few more of them? Dead, dead and dead.
Who’s next? Who’s next? The pound? (cue side-splitting laughter as it falls into a black abyss from which there is no return and knock back a whiskey on me)
So what the actual heck has gone on? Markets globally have decided to go on some kind of crazy rollercoaster with prices rolling back over 30 years in some cases. Has anyone seen Michael J Fox in a DeLorean or something?
It’s kind of like this. The British public wanted out of the local ‘hood gang and go it alone, despite being warned that the financial equivalent of concrete boots and a trip to the bottom of the Channel were on the cards. To be fair, during the campaign they had more chance of learning the truth about Area 51 than what Brexit really meant. Let’s put it this way – I haven’t seen as much blatant propaganda since I studied World War 2 in high school.
It might not have been a complete car crash but the problem is no-one believed they’d actually have the balls to do it. There couldn’t have been more heavyweights warning those tea-drinking, flat cap wearing Englishers not to jump. And I mean everyone – from the US President, China and the governor of the Bank of England to the head of the IMF and numerous academic experts all saying Noooo, bad plan, step away from the red button. But the Brits can be a tad… contrary… and if someone tells them no, guess what’s going to happen.
So what it boils down to is this. Politically, Plan A was to have a referendum as the electorate had been promised one. This would keep the masses happy but nothing more. Then the powers that be would pat the masses on the head when the results came in and basically carrying on as before. It was a shoo-in.
But… and it’s a big but… there was no Plan B. I’m not kidding. But it gets worse.
This bit will make you laugh – everyone who might have made a plan has quit. The Prime Minister. The head of the Leave campaign. The guy who backstabbed him. The other racist nationalist guy who stirred it all up. Seriously. There is a fresh new government in the UK right now and guess what, the country just hit an iceberg.
Singing Rule Britannia while the Titanic goes down
So we’re pretty much left with a mob rowdily singing Rule Britannia in victory while standing on the Titanic as it goes down.
It’s a mess.
Happily, here at SparkProfit we don’t actually trade stocks and shares. We just predict where the markets are going so we win when markets go down as well as up. Phew!
So all you have to do now is decide which currencies, exchanges and commodities are getting in the lifeboat. Think Asian markets, US dollars, and financial organisations with a big presence in Germany. And which are going down with the ship. I’d be looking at the pound, the FTSE 250, the Euro and UK-based financial institutions like Lloyds, who I reckon are secretly fighting just to keep their heads above water as their passport to European banking was just given away.
Keep in mind that when you’re looking at markets news, you’ll see a lot of EU chiefs are beating their chests like a gorilla defending its territory as they’re desperate to stop any other countries copying the Brits. And the entire City of London banking industry is debating whether or not to pack a weekend bag and elope to Frankfurt. This is going to cause tsunamis for some time to come.
1.35 is a key level on GBPUSD
Any announcements from the Bank of England, European Central Bank or news about Brexit details are likely to send waves crashing over the markets so there’s plenty of chances to cash in. Hop over to SparkProfit and see what’s happening right now.
Disclaimer: All views, opinions or analysis in these articles are those of the author and do not represent the views of Nous. Neither the author, TIQL, Nous nor SparkProfit provide financial advice and these articles should not be construed as such.