Around The World In 100 Words : JULY 2016; Week 26

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Lights, camera, action! What a week! Following Britain's vote to exit the European Union, the markets reacted by sharply selling off and the British Pound hit lows not seen for decades. The beginning of the end experts predicated, until...what, hold the presses, the markets are up?! Yes, the week ended with stocks reversing all of their Brexit losses, signifying that the Liberal Elite are wrong (again) and if there's any beginning to any end; it's all but surely that of the EU.

When all the vitriol has died down, the only thing left is the inescapable reality that a majority of British citizens in exercising their democratic voice, opted to turn their backs on the anti-democratic, paternalistic and near-imperial manner that Brussels-crats show toward their member states. And the English will carry on as they have since the Battle of Hastings in 1066. As for the paroxysms of outrage by the losing side (Remain), they are, to quote the Bard, "a tale told by fool full of sound and fury signifying nothing." 

So what's ahead for next week? Time will tell, but longer term structural issues such as aging demographics and governments intent on borrowing from the future to live in the present represent more serious concerns then any vote on any membership in any club.

Hope for the best, prepare for the worst. And we have, with portfolio allocations focused on preserving capital first. Returns over time will come.


Martin