Brexit, England’s exit from the E.U. (European Union), is a hot topic in the news with many British citizens cheering. You’ve probably heard the term at least once, but may not understand why so many people are happy about it. And will it affect the U.S. economy? We’ll point out at the potential implications Brexit has on the United States economy, but first let’s cover why Brexit was good news to England’s citizens. As a member of the E.U., the English didn’t have power over their own country. The government was helpless to the demands and rules forced upon them by European Union. It gets worse than that. The E.U. established a series of ridiculous laws, such as:
- Banning electrical teapots
- Requiring drivers to take a break every 30 minutes
- Regulating the size and curve of bananas
- Prohibiting people from selling eggs by the dozen
They really addressed some pressing issues, didn’t they? Selling eggs by the dozen is a catastrophe waiting to happen. You could say Britain was being suffocated by the European Union. Brexit was clearly a vote for freedom. No one likes being told how to live their lives, especially when what they’re doing doesn’t harm anyone. What will Brexit mean for the U.S. economy? Only time will tell for sure, but here’s what’s likely to occur:
- Fears that the EU may be falling apart
- Volatile markets will slow down the engine of U.S. growth
- Brexit triggers a strong dollar, which hurts U.S. trade
- Brexit forces the Fed to rewrite its rate hike playbook
Although Brexit will contribute to the U.S. stock market falling, this is not to say that your financial portfolio will be in danger. Throughout the ongoing turmoil of the market upheaval which Brexit may precipitate, our strategies protect your gains and keep you from losing money in case of inevitable market corrections. Moreover, the impact Brexit has on the U.S. economy will be minor and temporary. Longer-term, safe havens like precious metals are excellent at this time as a result. Contact us for specific advice on your financial portfolio to help you continue building your wealth throughout the aftermath of Brexit.