I am not a fortune teller nor a visionary and I admit, I didn’t call the Brexit outcome correctly, but I was right about the financial chaos an exit from the EU would cause should it win the majority of the Britsvote…and so it came to pass…The markets went nuts only to make a slight recovery the next day. Of course with globalization, like it or not, the rest of the world is not immune from the effects of this momentous decision But what are some of the issues that could impact the US directly? First off, the dollar has strengthened and will continue on that path. This, of course, will negatively affect our exports.
But is there a bright side to this unprecedented move? Once again, real estate will probably step up to the plate and although the brits may not be buying so many vacation homes here this year, businesses are already eyeing the US as perhaps a safer haven for their investments. The mortgage rates are at almost bottom low so the buyers will be all over the real estate market, not to mention a strong comeback for the refi market. So, for the short term, at least, things look rosier for us than those across the pond.
That being said the markets have recovered some calm and for the moment appear to have rebounded. Investors and traders may have realized that the global impact will be gradual and likely be contained within Europe.Household net worth was up 1% and home values jumped $498 billion in the first quarter while stocks and mutual fund vales saw a drop of $160 billion .. You see, you just can’t beat dirt fora good “grounded” (ouch!) investment!
Murrell Weissinger,, TRC, CDPE, Realtor® ♦ Watson Realty Corp. ♦ 3175-1 A1A South ♦ St. Augustine, FL 32080 ♦ 904.669.2146