Quick Take on Brexit

Here’s my very quick take on UK’s vote to leave EU.

I think a lot of voters felt very patronised by the political ‘elite’ of UK, EU and further afield over this subject. “Project Fear” inasmuch as it existed therefore probably backfired.

  1. It won’t be the financial cataclysm George Osborne suggested — weaker GBP great for exporters, and might make consumers think twice about some of their purchasing.
  2. There will be no emergency budget, and NHS spending won’t be slashed.
  3. It’s a good thing for EU as it will trigger some much-needed re-thinking of the whole ‘European Project’ in order to head off Czech, Netherlands and others that might be next to leave.
  4. Trade between UK & EU will barely be affected – UK will continue to buy a lot of EU’s exports; unless of course EU makes it hard for UK to export its own goods back to EU by raising tariffs. Nobody wants a trade war.

I’m buying GBPUSD at $1.33