Regardless the outcome of the Brexit vote, the European Union is failing, according to newsletter writer and technical analyst Clive Maund. The consequences will likely include a soaring dollar and a falling euro, market volatility and a slide in the prices of some commodities, but Maund has identified ways investors can profit from the chaos.
With the Brexit vote underway, we can expect to see big volatility in markets immediately following it, and possibly even before it, if the market thinks it has got wind of the outcome ahead of the final count.
If Britain votes to leave the European Union, the presumption is that the euro will drop hard, because this would be a big prominent nail in the coffin of the failing Union. And because the euro comprises about 57% of the dollar index, we can expect it to soar.
If Britain votes to stay in, the outcome is less clear, since Britain staying in will not solve the mounting problems of the EU.
The European Union is now doomed to fail and eventually break up. If Britain does vote to leave, then other disenchanted countries can be expected to follow suit in time, and this rotten, self-serving organization will slowly lose its power base. If Britain stays, then increasing polarization and the rise of the extreme right can be expected to get the job done.
A wild card during these uncertain times is Europe deliberately setting out to provoke Russia at Washington’s bidding by imposing sanctions on it, permitting the stationing of missile batteries along its borders and staging military exercises, etc. European leaders need to remember that Russia is a lot closer to Europe than the U.S., and pushed to the limit or beyond, Russia has the capacity to turn most of the citizens of Europe into pieces …read more