Britain Voted to Leave EU – What Happens Then?
What is going to happen now that Britain has voted to leave the European Union? This question has been echoed across the web and television.
There have been a number of speculations, but let us try to stick to the facts and the actual things currently happening in the country after a victory vote for the separation of Britain from EU has been declared.
Sterling hits an all-time low.
In the aftermath of Britain’ decision to leave the EU, sterling hits $1.3122 GBP=D4. This is the lowest rate it gets since 1985 after about 31 years. Financial analysts accurately predicted sterling to slide down further as traders monitored the voting.
Sterling is not the only currency affected though. Even euro remained weak. It was last recorded as down to 0.9 percent at $1.10A
Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington, said in an interview “We’re not in a full-blown panic in the pound, but the elevated level of uncertainty will leave the pound at risk of plumbing new lows.”
Investing opportunity opened
The Brexit situation has shaken up the stock market as sterling takes a plunge. But as the they said, all is not dim. Some investors are keeping a positive attitude.
Ritholtz Wealth Management and financial blog author, Michael Batnick, believes that stock investors should keep calm and carry on. He encourages investors to invest in a well-diversified portfolio in order to create a balance investment. Instead of jumping out of stocks rights away, Batnick encourages investors to invest in other assets such as properties.
Save money from EU membership
Membership to the EU turned out to be costly. Britain contributes about 10 billion pound every year to the European Union’s budget. Choosing to the leave the union provides Britain the opportunity to save money and use that budget for projects that will benefit many people.