ME-Transcript-britain-exits.pdf

Sgt Tom Cunnally I disagree. Investment money that will be pulled from Europe will have to go somewhere. Three choices, US, Japan, or China. Well 4, precious metals. We have already seen today that bonds are up. The dollar is on the rise. The DOW is up. Once the market stabilizes in the next day or two brokers are going to be rolling in the money. The only ones that are going to take a huge hit are Germany and France.

Sgt Tom Cunnally great solid read and share!

We expect less volatility in U.S. equities; however, negative pressure to the tune of potentially mid-single digits to the downside should be expected.
It should be larger over in the European Union, as well as the U.K. And we do expect some further downside in the British pound.
Overall, economic activity from a growth perspective, the biggest hit to growth should be in the U.K. We do expect those should be prepared for a potential recession for a 2-to-3-quarter impact in the coming quarters, as well as across the Eurozone, where we expect an impact of around 1% to 1.5% growth.
Overall, the United States, the growth impact there from a GDP perspective, is a little bit less. The direct impact comes from secondary effects, rather than overall sales exposure to the United Kingdom.
However, in the medium and long term, the single biggest question that has been overhanging markets for the past 6 to 12 months, which is geopolitical uncertainty, as well as policy overall, that should remain. And it should actually pick up around the world. You’ve got further elections going on in Spain, in Germany, and in France in 2017, as well as Italy. So, overall, around the world, geopolitical equation has now taken a little bit turn for the worse. Darker clouds are out there, which should limit multiples in asset classes, namely, equities.