Tag Archives: Warren Buffet

bexit

Brexit. So what’s next for the UK post EU Referendum?

Brexit. So what’s next for the UK post EU Referendum?Well there is the obvious knee jerk reaction to the voting results with markets being affected.  The Bank of England says it expects some market volatility after the Brexit vote but that the UK economy can handle it. “Inevitably, there will be a period of uncertainty and adjustment following this result.Brexit has caused in a short space of time uncertainty. People worry about what happens next and it makes people feel vulnerable. With uncertainty people generally take a breath. They pause. They put things on hold. Why; because there is a general sense of fear.  Successful investors tend to take control of the fear. Be decisive and listen to those with credibility and knowledge. Not just those who throw statements out without backing it up. We’ve heard enough of these misinformed vocal debates with the political campaigns.Warren buffet arguably the greatest investor of our generation buys or invests in times of uncertainty. If the wealthiest investor is saying this, then when is it a good time to invest? If you don’t know who Warren Buffet is take a look at this link http://bit.ly/therichestinvestorCurrency
The Pound has weakened against the dollar and the Euro. But haven’t we seen this before? What happened? It strengthened again. One industry where the UK is strong in is finance. London is one of the biggest financial centres in the world. History shows that when industries go down they eventually come back up.Property Landlords
Now that Cameron has resigned will the removal of mortgage tax relief still go ahead next year with a new conservative leader to be in place by October? Along with the 3% increase in stamp duty this has got to be the biggest blow to property investors and landlords. A different leader and different approach? If this new tax goes ahead, there will be the inevitable higher rents making it harder for first time buyers.
Interest rates
There is talk that interest rates might have to be increased due the pressure of inflation. Equally there is more speculation that interest rates might have to be lowered if there is a severe shock to the economy. Who actually knows?
House Prices
The IMF have been quoted that there could be a drop in house prices. That is possible. There could be a possible drop but always starts in London. But with the high predictions for growth in property market pre Brexit, we are talking a possible drop on where it WOULD have been in the next few years.  So still up but maybe not as much. The housing shortage is still present. The demand for houses continues to increase.
One thing which is clear that there are changes ahead but is the UK going to fall on its knees as the scaremongering has been quoted? The UK existed before the EU and it will exist post the EU.
Mark Carney the Governor of the Bank of England has stated “There will be no initial change in the way our people can travel, in the way our goods can move or the way our services can be sold. “And it will take some time for the United Kingdom to establish new relationships with Europe and the rest of the world.”
Carney added the Bank expects “some market and economic volatility” as those new relationships are struck. He added: “But we are well prepared for this.  The Treasury and the Bank of England have engaged in extensive contingency planning and the Chancellor and I have been in close contact, including through the night and this morning.  The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward.”
A sensible and level headed approach is what’s needed but today is a reflection and an instant reaction to the results of the EU Referendum.  There is no crystal ball. There are no guarantees. There has never been.