Hello MarketClub members everywhere. Well, we had the weekend to ponder and recalibrate our thinking towards Great Britain's historic exit from the EU and its effect on world markets.
Personally, I congratulate the British for having the chutzpah to go against conventional thinking. It is not like England is some third world power, they have the 5th largest economy in the world and provide 50% of the EU's military power. History will prove whether or not the Brits got it right by exiting the EU. My gut feeling is any time you can do without faceless bureaucrats running things, you are better off. I'm hard-pressed to point out any outstanding achievements generated by any bureaucracy. Nor can I point to any example of when a bureaucracy has admitted or taken responsibility for major screw-ups. So, I think Great Britain is better off without Brussels and their faceless bureaucracy.
Where does that leave the markets?
Here is what I am thinking and it is based purely on market reaction. After Friday's 610.4 drop in the DOW, I would not be in a rush to buy stocks. Make no mistake about it, the 3.39% drop was and is a big deal.
For some time now I have been nervous about this market before the historic Brexit vote. Now that the cat is out of the bag I think we will see other countries start to exit the EU. A great deal of this has to be based on middle east immigration and open borders.
I'm going to say it, Muslim nations for the most part, do not assimilate well into European culture. Historically we have not seen any successful integration of Muslims into Western society. For the most part, the Muslin culture tends to stick very much to themselves, and this in and of itself creates a problem for many western nations.
This is the main reason why I believe European countries will decide to take back their country and culture.
Okay, now that I have that off of my chest I will be giving you my analysis of stocks along with gold, which is on the move to the upside and crude oil which is trapped between a rock and a hard place.
Stay focused and disciplined.
Every success with MarketClub,