The UK is leaving the EU, now what?
The Brexit vote came and went, with most analysts and many of us scratching our heads that the UK decided to leave the European Union (EU). Google confirmed that one of the main questions typed into its search engines on that day was, “What is the EU?” which begs the question, if anyone there really had any idea what they were voting for in the first place. Adding more pain, to all their soccer (football) fans, “England is the first country in history to leave the EU twice in once week.” Which one hurt more? The UK will eventually be ok, but it could take 5 years of uncertainty to find out where they will stand among the global players. June happened to be a hectic month for the markets as the prospect for a US summer rate hike were fairly high until the Brexit vote which now decreases the chance of a rate hike in 2016 altogether. The vote sparked a sell off in the markets around the world, until someone realized that nothing as of yet actually changed at the underlying companies within the UK; or that other global companies may have limited exposure to anything detrimental. The recent market rally proves that the global impact of the 5th largest economy in the world has far less strain on global growth than China or the US. Gold has been rallying while crude oil prices have stabilized and are ranging from $46 to $50 range, both positive signs for our resource driven economy.