Norway is not a member of the EU.I wrote this as an OP but it fits as a comment as well.The PM isn't actually stepping down till October. It will up to the new PM responsiblity to invoke article 50. At that time Britain will have 2 years to form agreements with member EU states and negotiate it's exit from the EU as well develop trade treaties to replace those lost by it's exit from the EU. That's going to be a tall order, one that many experts believe is not possible. Now with the possibility of the separation of Scotland and/or Ireland from Great Britain, the future is even more cloudy.If you are retiring in 5 years, you should not have more than 30-40% in equities.
Retirement isn't always panned and not always a choice, 30-40% of savings is huge, something many can't recover from.
If the UK falls into a recession, that has a direct effect on the global economy, if say Northern iIreland and Scotland tell the UK to go F itself and decide to stay in the union and if France and Germany then also decide to leave, I could see the potential for a good sized global recession.A lot of uncertainty keeps money in peoples' pockets.
We'll see what happens,
30-40% is not a large allocation to equities- it is extremely conservative.
Bear markets are common and expected. A black swan event that creates a 50% drop in stock prices only draws a 35/65 portfolio down by 17.5% - if that is too "risky" then you should adjust your allocation to 20% or lower.
I'm saying to take a large hit on 30-40% is big. We'll see what happens in the coming days, weeks and months but I wouldn't just automatically assume the markets will balance themselves out in the short term.
Here is just one of the many problems businesses face. Most of the worlds leading financial service companies have their European headquarters in London. A major advantage of London is being in one of the worlds major financial centers with a single market of over 500 million customers in the 26 country EU. Without membership in the EU, these companies will face dealing with yet undefined rules and regulations of 26 countries, which may mean an exit of a significant part of London's financial community. This would directly effect up to 250,000 workers and resulting in major financial losses for the area and this is just one of many business sectors. I believe it will be years before the business community has a clear picture of what Britain will look like after Brexit.
There Will Be Two EU's
That is what you are going to see in the near future and there are two reasons and one possible result.
1, Economics, the current EU has some real fiscal problems. Some countries such as Norway have gone to the effort and extent to protect their economies while others like Greece have wasted their money. Thus the economics of a lone EU are being tore apart by wasteful spending liberals.
2, Religion, the importation of islamic savages is splitting the EU by faith no different then when Ireland was split by faith and just as deadly.
Possible result, civil war based on economics and religion with the British taking the NON islamic controlled path and England taking the PRO islamic path. with an islamic mayor in London leadership for both groups is in place. Just like both sides had leadership in place for our own civil war so its more than possible, it's likely the future.
And our future is their present as we have islamic leadership {Obama} trying to replace its self with an islamic operative {Clinton}. We KNOW islamic terrorists are being "pocketed" around our country and we HAVE seen islamic operatives kill in this country many times.
The globalists WANT globalized civil war and are putting the people in place for it.
Like many people you neglect some huge financial advantages of EU membership which benefits both businesses and the public.
- The CBI which represents 190,000 businesses was surveyed concerning EU membership. 71% of CBI member businesses report that the UK’s membership in the EU has had an overall positive impact on their business. Only 13% said there had been a negative impact.
- A CBI review suggests that the net benefit of EU membership to the UK could be in the region of 4-5% of GDP or £62bn - £78bn a year – roughly the economies of the North East and Northern Ireland taken together.
- The EU provides a 16.4 trillion dollar single market of 500 million customers to every business in a EU country. The EU has eliminated tariff barriers and customs procedures within its borders. Product sales across EU countries has soared do to the ease of marketing in the EU. Without the EU, a producer would have to deal with a host of different laws and regulation in each country. This has been very positive for small business.
- The EU is a springboard for trade with the rest of the world through its global clout. it accounted for 23% of the global economy in 2012 in dollar terms. Through 30 trade deals negotiated by the EU, including the Single Market itself. Firms have full access to a $24 trillion market. A non-member would have to negotiate it's trade treaties with 52 countries.
- The free movement of labor helps business plug skills gaps and provides increased job opportunities. Work permits and employee restrictions between EU countries have in almost all countries and job categories disappeared.
- For customers in countries that have adopted the Euro, purchasing across their boarders is as easy a customer in New York purchasing a product froma company In Los Angles.