Re: EU - where did it go wrong?
Posted: Mon Jun 27, 2016 12:46 pm
akirk wrote:I think it will be a while before we know whether there was / wasn't a plan - and how detailed / complete it might have been...
Let us not forget that politics and media hysteria both get in the way of accurate knowledge - what is clear is that the market response is a lot better than many predicted - partly due to preparedness by the Bank of England, and many big corporations - who have had plans for this ready for quite a while now...
Aston Martin (predominantly owned by foreign money including the recent Invest Industrial fund investment which is Italian based and pan-European) has confirmed since the vote that they will go ahead with the Wales based factory
Boeing confirmed a while back that they would move their HQ here regardless of vote outcome
The FTSE 100 hasn't changed much - yes there was a sharp drop on Friday - but primarily correcting the false beliefs from the previous week when it was believed that the vote would be to remain - causing growth in the index... It closed up on Friady above its value a week previously
The FTSE 250 is down a bit, and is a more accurate reflection of UK companies - however it is not all that dramatic, and will undoubtedly correct against the real / asset / market cap values of the businesses
The pound is down sharply against the dollar - yet it is still higher than it was in February
i.e. - we can't just take one side of a discussion - we have to see figures in context, not see them being used artificially to demonstrate the point the commentator wants made! We need to remove the noise from the figures - esp. the artificial changes due to speculators who are now correcting their positions - that alone will disrupt the market - but has nothing to do with the real value of businesses underneath - with anything in the financial market you have to try and separate substance and noise - and at the moment there is a lot more noise than usual, causing some dramatic looking graphs (especially when viewed over a week rather than the normal month / 6 month / yearly trends...) - that doesn't mean that they present an accurate position...
I take your points but this whole things started out wrong. It was a knee jerk reaction and they rarely end up well.
What is the old military saying...'Piss poor preparation makes for piss poor performance....something along those lines.
Perhaps if we had a proper constitution for the country and the way these things (referendums) should be handled were written into it (hand hint for the future) then we would have all known what to expect, from the outset.
Alasdair