Well, that was an interesting end to the week!
Talk about a seismic shift in the world order.
The markets are coming off a tumultuous day on Friday, in the wake of Britain’s decision to leave the European Union.
As a Brit myself, I’ve obviously had a keen interest in the referendum right from the start – despite the fact that I’ve lived in the United States for too long to actually cast a vote in it.
I won’t perform a full-on post-mortem here. But suffice it to say that since I’d have voted for Britain to remain in the EU, it’s a hugely disappointing outcome.
Not to mention downright scary.
Nobody likes uncertainty – and Britain just got a gigantic smorgasbord of it.
The country has just waved “cheerio” to its largest trading partner, with a slew of protracted new trade negotiations now imminent. There’s no guarantee that those deals will be better – and the ensuing doubt could spell trouble for the economy, the pound, the U.K. labor market, and wages.
The number of areas that voted to leave was shocking, such is the strength of feeling. But I can’t help wondering if people really knew what they were voting for and against.
Neither campaign did a good job of conveying their messages, and amid all the soundbites, sniping, and finger-pointing, I think the public had difficulty separating facts from fiction.
Many clearly used their vote in anger and protest against soon-to-be ex-Prime Minister David Cameron, the government, and the establishment at large. Which is fine… but this will have far-reaching implications in many ways and for many years – long after the current players have gone.
It seems to me that far from the pro-Leavers heralding Britain’s strength, the country has just become smaller, more fragmented, highly divided, and less powerful. More isolationist than inclusive.
The only bright spot? I’m heading back home next Wednesday – and with the pound getting absolutely battered against the U.S. dollar (to levels not seen since 1985 at one point), the exchange rate just got a whole lot better! It’s a small consolation, though.