Start the conversation
In the words of New York Yankees Hall of Famer, Yogi Berra…
…it's déjà vu all over again
News broke last week that the United Kingdom will invoke Article 50 on March 29 in a move that will formally initiate that nation's departure from the European Union, an event known colloquially as the "Brexit."
I don't believe investors have fully priced in the consequences and, as a result, you've got an incredible opportunity on your hands. Before I get to that, I'd like to spend a moment on what the Brexit means for your money.
Then we'll move on to one company you'll want to own before the Brexit negotiations start.
Make no bones about it, the "Brexit" is a big deal.
Not only is the UK the first sovereign state to leave the EU since it was formed 60 years ago, but it also won't be the last. Possibilities include a Frexit (France leaving), a Spexit (Spain leaving), a Nexit (the Netherlands leaving).
Still more headline-worthy possibilities could include a Departugal. Quitaly, Fruckoff. Czechout. Oustria. Finish. Slovlong. Latervia. Byegium. It'sSpainreal.
Triggering Article 50 means that Prime Minister Theresa May will officially inform the EU that the UK intends to depart. It's the first step towards negotiating the UK's departure.
Political apparatchiks will have you believe that the process will be complicated and drawn out when it actually could be short and simple for one reason.
Both the EU and the UK want to maintain close relations.
The UK simply wants to be on its own, a point voters made abundantly clear. Plenty of nations will want to do business. German Finance Minister Wolfgang Schäuble has already gone on record calling Britain a reliable partner in international agreements despite being the last person on Earth you'd think would make such a statement given Germany's pre-vote political posturing.
China's also looking to do more business in London. So are dozens of other countries – including the United States – with a combined GDP of more than £40 trillion, or approximately US$50 trillion.
European Commissioner for Economic and Financial Affairs, Pierre Moscovici, has publicly said the EU will try to seek a close relationship with the United Kingdom, while Brexit negotiator Michel Barnier said that the EU was determined to sign a "unique" trade deal with the UK as soon as it could.
The sentiment is clearly good if for no other reason than it has to be… to prevent other EU members from leaving in the future.
What Does Brexit Mean for the British Pound?
The British pound has fallen roughly 20% since the June 2016 vote and hit an all-time low in October.
But the complete collapse once widely predicted last June doesn't appear to be in the cards. Not only is the UK far more resilient than Brexit opponents thought, but both GDP growth and unemployment have actually topped expectations since the vote as I suggested they would.
I see th…
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.