Brexit! Is this a word? What does this word mean? It’s a word made up of two other words, British and Exit. Something like J-Lo, which stands for Jennifer Lopez. Brexit is a word made up which is short for the British exit or withdrawal from the European Union (EU). Brexit is a political goal that has been pursued by various advocacy groups, and political parties since the United Kingdom joined the precursor of the European Union in 1973.
The European Union (EU) is a political-economic union of 28 member countries that are located primarily in Europe. The EU has developed an internal single market through a standardised system of laws that apply in all member states. Within the EU, passport controls have been abolished. EU policies aim to ensure the free movement of people, goods, services, and capital, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development.
The United Kingdom voted in a referendum on 23 June 2016 to leave the EU. Well, is this world changing or what? Passport control? Is Trump influencing change? Are people sick of the direction the world is moving? Why is Trump so popular? Why is Bernie so popular? If Trump gets in, big changes may continue. The British leaving the EU is huge news and the world might never be the same!
The result from a historic referendum in the U.K. is rocking markets around the world and slamming U.S. stock futures, which indicate how shares will open at 9:30 a.m. The Dow futures are -510, Nasdaq -160 and the S&P -75. Get ready for a crazy day!
The result led British Prime Minister David Cameron to issue his resignation this morning. He had been campaigning for the U.K. to remain in the EU. I guess Cameron and his far left ways said, I’m taking by ball and going home. The left does the same in this country. If it doesn’t go the liberal way, there will be unrest. I can’t even imagine what happens in this country if Trump gets in.
Yesterday I was watching CNBC as I was trading. Every trader on the different segments of the show was saying the U.K. will leave the EU and tomorrow will be a huge day in the market. They said “you must be fully invested.” They had me thinking, should I load up on stock? Should I get out of all my short positions? I decided to not make a move and stay my course. I am holding 1000 shares of Facebook but I’m not worried about that. Facebook will come back! The rest of my positions are short and I should have a nice day; only time will tell! The bottom line here is, you must have a plan and the “professionals” know no more than us who live on Main Street.
This looks like it’s going to be a brutal day for the ones who are long but I think the bigger news is the direction the world in moving. People of the world are fed up!
I cannot cover this entire huge story in my forum. Make sure you Google Brexit and get the full story and the ramifications of the British historic referendum vote.
Steve
The Options Coach