Fri 24th June-UK leaving Europe

Confirmation coming through in last few hours that the UK will be leaving the European Union

While unexpected the underlying concerns within the UK to Europe have been a long time coming and a few percentage points movement has now led to a narrow vote to leave the European Union (possibly 51-49)

In the short term this will lead to significant volatility in equity and currency markets

Central Bank Governers will move to calm the markets by adding additional liquidity and acting in a coordination fashion

After a few days of volatility longer ternm issues will need to be considered including the prospect of other countries seeking to leave Europe

The UK may be able to renegotiate terms with the EU and at the very least will need several years before formally exiting the union.

The UK vote split widely between regions with Scotland and Northern Ireland wanting to stay so this could lead to further referendums

Investors are probably best to stay on the sidelines until markets stabilise including the resuls of our own Federal Election on 2nd July

I will do a video and full newsletter once things become clearer.

Good to be living in Australia !

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