Has Brexit created a short term buying opportunity?

[MarathonMike]

Looking at the DOW futures, holy moly! Down 700+. But the more I'm reading the more I think this is an over-reaction and a buying opportunity. Thoughts?

 

[HenryBHough]

Not the time to sell.

Monday may not see the best of opportunities but should still be good.

If Inwere buying it would be tomorrow. MI, very probably like George Soros, will buy GBP early tomorrow...but mostly because Inexpect to spend them in a few weeks.

 

[waltky]

Brexit aftershock...

Brexit: Merkel says 'no need to be nasty' in leaving talks
Sat, 25 Jun 2016 - German Chancellor Angela Merkel says the EU has "no need to be particularly nasty in any way" in the negotiations with Britain about its exit from the bloc.

She insisted that deterring other countries from leaving the EU should not be a priority in the talks. And she added she was not in favour of pushing for a speedy withdrawal. Britain narrowly voted to end its membership in a historic referendum last Thursday. Mrs Merkel was speaking after several EU foreign ministers - including Germany's - had urged Britain to quickly implement its exit. "It shouldn't take forever, that's right, but I would not fight for a short timeframe," she said. She added that she was seeking an "objective, good" climate in the talks with Britain, which "must be conducted properly".

German Foreign Minister Frank-Walter Steinmeier had earlier said negotiations should begin as "soon as possible". He made the comments after an urgent meeting of the six EU founder members to discuss the decision. British Prime Minister David Cameron has said he will step down by October to allow his successor to conduct talks. The six countries attending the summit in Berlin - Germany, France, Italy, Belgium, Luxembourg and the Netherlands - first joined forces in the 1950s and still form the core of the EU. "We say here together, this process should get under way as soon as possible so that we are not left in limbo but rather can concentrate on the future of Europe," Mr Steinmeier said.

His Dutch counterpart Bert Koenders said the continent could not accept a political vacuum, saying "this will not be business as usual". Speaking later to the BBC, Estonian President Toomas Hendrik Ilves said he didn't think it was "even legally possible" to force the UK to speed up the exit process. "I understand it is very difficult for Prime Minister Cameron, who was against leaving the European Union, to now go ahead and do this," he told the BBC World Service's Newshour programme. "I think we should give them time; let them decide how quickly they want to do it." He described Britain's exit from the bloc as "a disaster" saying Estonia had often aligned itself with the UK and had counted on Britain to present their shared views.

In other developments:

See also:

Brexit: IMF urges 'smooth transition' to a new economic relationship
Saturday 25th June, 2016 - IMF chief Christine Lagarde called on Britain and Europe on Friday (Jun 24) to work together to ensure that Britain's pullout from the European Union will take place smoothly.

"We urge the authorities in the UK and Europe to work collaboratively to ensure a smooth transition to a new economic relationship between the UK and the EU, including by clarifying the procedures and broad objectives that will guide the process," Lagarde said.

In a statement after Britain's shock vote Thursday to leave the EU, the IMF managing director also strongly endorsed the commitments of the Bank of England and the European Central Bank to make sure the banking system has enough liquidity and to tamp down market volatility.

"We will continue to monitor developments closely and stand ready to support our members as needed," Lagarde said.

Brexit: IMF urges 'smooth transition' to a new economic relationship

Related:

Soros warns of EU disintegration
Sat, 25 Jun 2016 - Billionaire investor George Soros warns that Britain's vote to leave the European Union makes the disintegration of the bloc "practically irreversible".

However, he called for thorough reconstruction of the EU in an attempt to save it. Before Thursday's UK referendum, Mr Soros had warned of financial meltdown if Britain voted to leave. In his latest comments, he said the effects of the decision would damage Britain. "Britain eventually may or may not be relatively better off than other countries by leaving the EU, but its economy and people stand to suffer significantly in the short- to medium term," he wrote on the Project Syndicate website.

Mr Soros made huge profits in 1992's "Black Wednesday" by betting against the British pound as it crashed out of the European Exchange Rate Mechanism. Before Friday's vote he warned of a similar meltdown, predicting a Brexit victory would send the pound down by 15-20%. In the event, sterling fell about 10% to a 31-year low.

'Turmoil'

"Now the catastrophic scenario that many feared has materialised, making the disintegration of the EU practically irreversible," wrote Mr Soros in his latest article. "The financial markets worldwide are likely to remain in turmoil as the long, complicated process of political and economic divorce from the EU is negotiated."

He said the consequences for the economy would be comparable to the financial crisis of 2007-2008. "After Brexit, all of us who believe in the values and principles that the EU was designed to uphold must band together to save it by thoroughly reconstructing it," he wrote. "I am convinced that as the consequences of Brexit unfold in the weeks and months ahead, more and more people will join us."

What comes next?

 

[william the wie]

Dollar denominated loans in the third world may cause Venezuela and Nigeria to become failed states rapidly. Other countries will also be hit hard.

 

[saveliberty]

The Thursday 250 uptick in the Dow makes the whole thing a virtual nonevent. Basically lost 350 from Wednesday through Friday and now maybe another 200 Monday? Hardly a 23% hit like 1987.

 

[william the wie]

The panic is definitely overdone.

 

[SeniorChief_Polock]

Looking at the DOW futures, holy moly! Down 700+. But the more I'm reading the more I think this is an over-reaction and a buying opportunity. Thoughts?

Great time to go to Britain and spend spend spend !!!! This is a PLUS for their economy.

 

[saveliberty]

Well, this is either a dead cat bounce or the opportunity went poof.

 

[william the wie]

I suspect the exchange rate problems will lag a lot but no date own when that will kick in. UK pharma has pound expenses and mostly dollar revenues with similar benefits on other industries.

 

[saveliberty]

Well, this should take some of the uncertainty out of a Fed rate hike for a while.

 

[william the wie]

Well, this should take some of the uncertainty out of a Fed rate hike for a while.

de facto rate hikes will keep on coming out of FOREX running up the value of the Dollar

 

[HenryBHough]

Glad I bought my £s for my upcoming trip yesterday. GBP already rising. But The Euro?

Current stats say it, too is rising but not quite 50% as rapidly at the pound.

Panic's over, elitists, time to stoke the fires and get the paychecks out to your blogosphere - they're getting worried and will soon demand payment in gold. Or maybe Yuan.

 

[william the wie]

Zambian stocks are the best performers in the world currently all 21 of them are headed for the heights.