Brexit

Brexit is an abbreviation for “British Exit.” Last Thursday the British voted to exit the European Union (EU). The vote to exit came as a shock to the markets where a vote to stay was widely anticipated. The stock market doesn’t like surprises and it doesn’t like uncertainty. The Brexit vote represented both.

The jury is out whether Brexit will be good or bad for England. The consensus is it will be a negative for the remaining EU members and the impact on the US will be marginal. The US will, after all, continue to trade with both Britain and the EU much as before. The full impact of the Brexit blues has yet to work itself out but it’s ironic, once again, the US is being viewed as the world’s safe haven and receiving a massive inflow of foreign cash.

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