Brexit is reaching into your bank account

Sean BowerI don’t think it’s out of the question that we may look back at this time, starting last Thursday when the UK went to the polls about leaving the European Union, as the period of chaos.

Chaos in Europe, chaos in the markets, chaos in the domestic political system, chaos in the global economy, and chaos nearly everywhere else you look.

In fact, the impact of the Brexit vote is so vast that it’s already reaching your bank account. And depending on what you do next, Brexit will either be putting money in or taking money straight out…

As one of the most important and resounding democratic decisions in the last decade, Brexit is something we may be talking about for several more decades to come.

Here are a few potential consequences of the UK’s vote to leave the EU:

  • Copycats following the lead of the UK and holding their own referendums to leave the EU. The Netherlands appears to be next in line.
  • The corroding of the EU based on the fact that the most powerful and stable nations are leaving.
  • A Donald Trump presidency. The Brexit vote has been talked about as a preliminary test for what Trump represents (anti-establishment) against what Hillary Clinton represents (the Establishment). British voters have just solidified the sentiment that the Establishment is out of touch with Main Street.
  • Stock market chaos. Stocks have already experienced a huge blow because of the Brexit vote. Now we’ll have to see what’s next – recovery or collapse. But it’s a much better bet that volatility will play a big part.
  • Gold could be propelled higher and higher. A byproduct of everything taking place is the lack of belief in the central banks to lead the domestic and global economies. And the precious metals are a bet against the central banks.

So it shouldn’t be hard to see how the Brexit vote is already either putting money in or taking money out of your bank account.

Here’s my thought process going forward – the outlook on gold (and silver) is impressive, and turmoil is what causes the price of those metals to skyrocket. For proof of that you simply need to look at Friday’s response to the Brexit vote.

So you’re now forewarned: there’s always a hand in your bank account, but it’s up to you to force that hand into putting money IN rather than taking money OUT

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