The UK referendum vote to leave will rock the stock markets for a while.

Here's a chart showing 45 years of Sterling vs the Dollar rates:

https://pbs.twimg.com/media/ClsTASjVEAErcA2.jpg:large

https://media.giphy.com/media/12YimfUI3xDZzq/giphy.gif

The UK has lost $350b over the last twelve hours, the FTSE is in freefall, this is the biggest contraction of British wealth since 1921:

https://pbs.twimg.com/media/ClsrxjxVAAAA2HU.jpg:large

EDIT: We've now dropped from fifth to sixth largest economy, the drop in the pound has allowed France to overtake us.

EDIT EDIT: The FTSE 250 has dropped 11.4%, the sharpest decline on record.

https://pbs.twimg.com/media/Clsw1LTXIAAwRI6.jpg

Crashes come and go, always invest based on the fundamentals. If the markets take a sharp downturn because of a political event, that's a major buying opportunity.:up:

The pound will recover, this is only an initial reaction. However it will probably not reach its former level again anytime soon.


OT i read that the "Sterling" comes from the east european means of paying (back then before the middle ages) with silver bars weighing roughly a pound, that were brought to England by the "Osterlinge", the name the foreign traders in England had, because they were from the east. The silverbars weighing a pound from the "Osterlinge" was then abbreviated to "Pound 'Sterling".
Maybe time for a completely new currency :03:

It is not only the stock market though, Brompton bicycles is a good example of the problems.
Up to now selling a bicycle in the Eu (Brompton sells 80 percent outside of England) was almost the same as if it was sold in England. But the company will now have to make new deals with every country it wants to sell its products in, insure its products seperately, set up new judicial texts for each country's law systems, adapt its guarantees, pay for internationally valid patents and now pay value added tax to all EU countries.
It will go on, but more complicated.

http://www.ibtimes.com/brexit-brompt...olding-2385036

77 percent of the UK car industry wanted to remain in the EU, for obvious reasons..

:know: :smug:

:haha: The Financial Times has just given up now:

https://pbs.twimg.com/media/Clsv12PWAAEHYfF.jpg:large

One can't honestly say this wasn't already predicted.

Don't chase charts and diagrams.

They are astrology. They pretend to show causality, where there is none.

Precisely, there are many financial houses as well as individuals who will do well out of all this.

The question is if the British people are one of those houses....

This is a slap in the face of common sense, and against what serious politicians have fought and negotiated for, for fifty and more years.
With the radical right now raising their heads all over Europe (the land), i guess the next one to leave will be Sweden, France (Marie LePen), The Netherlands (Geert Wilders) http://globalnews.ca/news/2783859/fi...for-referendum
followed by Poland (Law and justice party), Hungary and Romania, and then some more.
One of the greatest achievements after WW2 is toppling, with its nation's right wings parties gaining acceptance, influence, and control. I guess there will be a war, if this goes on. There will surely be a lot of new war profiteers, financially and politically.
I'm out of here.

Honestly, I wouldn't worry about that too much, if it's going to happen it probably won't happen in our generation, but the next generation or two is probably going to see more of the worst side of European politics than we are, and we're already seeing some pretty terrible parts of it.
I don't see a war in western Europe in my lifetime anyway...Eastern Europe...that's less clear.

Meanwhile Daily Mail readers react:

https://pbs.twimg.com/media/CluMdLoXEAAVKCl.jpg:large

They (if you know who they are then you are one of them) say that this separation from the EU will take years to complete.

Mean while the advice every rich parent gives to his or her children,

"Buy low and sell high" :yep: