Sunday, June 26, 2016

Don't Fall For The 'BREXIT' Drama

Too much drama over the Brexit.

The British economy was being hamstrung trying to keep a slew of socialist states afloat. Its tough enough supporting its own socialist policies (even while collecting a TV tax) let alone a whole continent's socialist policies. England was getting a whole lot less from the Union than it was giving. 

Her Magesty's great land will be just fine. 

It's not like no one is going to trade with Britain anymore - it's still a powerhouse economy and their citizens have more money to spend on tradable goods than most of Europe.  Calm down.  The world is NOT going to stop trading with Britain.

Yes, the global markets are down, but a correction has been a long time coming, so again - calm down.  The big boys of the markets want to scare the crap out of weak small investors and get them to sell so they can buy up on the cheap.  For those that have been standing on the sidelines waiting for a good correction to take place, the time to jump in is likely on its way.

Life's a Beach - Live it Up!Get up to $20◊ off with promo code BT20 .Book Now!

This blip will end up being a mere fraction of the damage that was done in 2007-08 during the crash following the housing bubble when subprime loans were dished out like Bazooka Joe bubble gum so the brokers and agents could make money on the fees, while strippers were allowed to take 16 mortgages at a time to help pump the numbers.  Some of those subprime problems are likely to show their ugly faces again, because old lending habits are coming back, since political correctness trumps practical lending policies - and some subprime eligible people are back to getting these shady variable rate mortgages that flushed us last time.  A perfect storm for a market drop would be the breakup of the EU and a re-visiting of our housing crisis, but let's stay on the topic of the Brexit for now.

Although we may see a dip in the markets, calamity is not coming. 

Both the British and European economies will end up stronger because they can negotiate deals based on their respective strengths and not be burdened by each other's weaknesses.  Britain has been a crutch for the European Union - the economies, cultures and identities of the EU countries are so different that it is unfair, if not ignorant, for anyone to compare that union to that of the United States.  That's not even comparing apples to oranges, because they are both fruits.  That comparison is comparing apples to ferry boats - two completely different comparisons.  

Britain hasn't even been all-in on the EU either - a huge point to remember - as they never adopted the Euro and stood fast to keeping the pound.  That makes this separation a whole lot easier than it would have been had Greece, for example, followed through with threats of the 'Grexit' a few years back. 

So again - calm down.

The markets drop based on uncertainty, not because all these traders happened to watch the news this morning and said "OH SNAP!!!! Didn't expect this, so call Tony Two Fingers and let's SEEEELLLLLLLL!!!!" 

No, this is more of a "a correction was coming anyway, so let's use this opportunity to shake out the weak hands in the market, allow for the correction and carry on. 

There is practically NO chance that the markets drop like they did in '07-'08 based on the Brexit alone, so the patient investor should just sit tight and get in on any coming dips. 

That's what it's all about, having patience and not being influenced by the mainstream propagandized media and the big boys trying to shake the tree.

And don't forget to CALM DOWN while watching all the social media drama.  It's not that bad. 

Save the drama for the Kardashians, not for the Brexit.



No comments:

Post a Comment

Follow by Email