United Kingdom and Leaving the European Union (EU) – BREXIT
I had multiple conversations last week regarding Britain’s decision to leave the European Union. First – for those that have not been following the drama closely – the term “BREXIT” is what “Britain’s EXIT” has been named. The question now is how will this decision affect financial markets for many years to come. There is a ton of speculation and I do not subscribe to many of the doomsday predictions but truth is – “I have no idea” how this will all shake out.
In the short term we will (have) seen some turmoil in the stock market – with the Dow closing down 600 points after the news – worst day since 2011 brexit millionaire reviews.
Also – Gold has spiked which is not surprising since Gold seems to always do well when uncertainty hits. On a positive front Mortgage Rates should see some downward pressure – so now is the time to re-fi or buy if you’re in the market to do so. Tell your adult age children to pay attention as we may not see rates this low for many years to come. From my perspective – that being a Safe Money Guy – I see the interest rate market continuing to languish. For many years there has been speculation that interest rates will rise. However – that has not occurred and what we are seeing around the globe is negative interest rates. The job of trying to keep principal safe and earn competitive returns continues to be a challenge and one that I spend most of my professional life researching. With Bank Products and Money Markets at levels so low that it is humorous – my clients are looking for ways to keep in pace with the increasing cost of living while enjoying the fruits of their labor. Not an easy task.
There are still many unknown factors and all of this will take time until we see how this all shakes out.
In closing it will take many years to see what the ramifications are related to BREXIT – so for now I will continue to look for Safe Money opportunities for my institutional and individual clients. The reality that interest rates of 5% – 8% is the zone that I will be in for many years to come is setting in more and more each passing year. Thankfully my clients are content with those rates for their hard earned funds.