Friday, June 24, 2016

Brexit...Is This An Opportunity?

I feel a little ashamed -- griping and moaning about a stupid tooth, when Europe's got a lot worse situation to think about. So do we as Americans, for that matter.

(The penicillin must be taking hold, because I'm finally starting to feel better. Thanks for your kind comments, by the way.)

If you haven't been paying attention to international events --

Great Britain just had a HUGE vote on whether to stay in the European Union (EU), or return to being independent.  BREXIT, they called it.

And the independents won. It wasn't a clearcut victory: nearly the same amount of voters thought the UK should 'remain.' (Unlike Scotland's recent un-vote for independence. Now loyalists there are agitating for another referendum.)

   David Cameron, the UK's Prime Minister, resigned. "This is how a political life ends: with a crash, not a whimper," said Scottish journalist Alex Massie. "David Cameron's place in history is now assured. He is the man who took the United Kingdom out of the European Union." Which is exactly what Cameron didn't want.
    (No news on whether Queen Elizabeth and her pack of royals will follow suit...but I doubt it.) 

What this all means --
     No one knows for certain.

But it certainly means instability, not only for other countries in the EU, but for financial markets there. Here, too.
    Lloyds Banking Group (LYG), one of Britain's primary banks, lost nearly 30% in stock value, at one point. (It's currently up a few percentages from that.)
    The Royal Bank of Scotland (RBS), which has had a number of financial mishaps in recent years, lost more than 20%.
     The British pound took a hit: more than 12% down.

And the NYSE  plunged more than 400 points.   More here on the general situation.
    (More here, too.)

Ironically, all this brouhaha also means --

Remember what Warren Buffett said about this kind of atmosphere?

I won't be going hogwild until the market stabilizes somewhat, but I do think this is a perfect time to load up on some quality stocks that were unnecessarily affected.  (Check, check and recheck your research and numbers first. But you should be doing that, anyways.)

I bought some Lloyds stock today.
Hopefully, there will be a nice profit on it in the near future.

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