Brexit!

[marko]

Quote:

Originally Posted by Senator I will be putting a buy in for DVY at 5% below yesterday's close. Pick up my July buy a little bit early.

I was at a cocktail party not long ago and a woman opined that "buying on a dip" was the equivalent of taking advantage of someone's misfortune and morally wrong.

Of course, with a hefty trust fund paying her bills it might be easy to take the high ground.

[CaliforniaMan]

They have many years of regulations to wind down because of this, it will take time. But my guess is that after it is all said and done, the agreements that will be made, will look pretty much like the agreements they already have, staying in the EU. Because they still have to meet the EU regulations to trade with the EU. In the end, I think it will not make much of a difference. Unfortunately they (and to a lesser degree the rest of us) will just have to suffer through somewhat lower GDP growth for a while until all this uncertainty is sorted out.

[Big_Hitter]

it's just money


how about that gold rally?

[Big_Hitter]

Quote:

Originally Posted by CaliforniaMan They have many years of regulations to wind down because of this,

assuming it gets past parliament...which it probably won't

[donheff]

I was surprised at how small the drops were, especially after he run-up occasioned by the bogus "stay" poll results. I expect the wailing and gnashing of teeth across the EU over the coming months will cause a continuation of the volatility we have grown accustomed to.

Should be some interesting developments. Scotland voted overwhelmingly to stay and may now exercise their right to re-do their referendum. It would be funny to see them decide to stay with the EU while the Scandinavian countries decide to go.

[ziggy29]

It actually triggered a rebalance for me to buy more international equities.

[Milton]

Quote:

Originally Posted by marko I was at a cocktail party not long ago and a woman opined that "buying on a dip" was the equivalent of taking advantage of someone's misfortune and morally wrong.

It's pretty commonly accepted that making a market / providing liquidity always has social utility.

[ziggy29]

Quote:

Originally Posted by Milton It's pretty commonly accepted that making a market / providing liquidity always has social utility.

Not only that, but if someone didn't step in to buy, their sell price on a market order would go lower and lower until someone finally bit. That hurts a panic seller even more than someone willing to buy the dips.

[audreyh1]

Quote:

Originally Posted by marko I was at a cocktail party not long ago and a woman opined that "buying on a dip" was the equivalent of taking advantage of someone's misfortune and morally wrong. Of course, with a hefty trust fund paying her bills it might be easy to take the high ground.

LOL - did you explain that if you didn't buy at the dip, someone else would buy even lower?

Buyer's strike = even lower prices. If someone needs to sell, they need to sell! And they can always choose not to sell until the like the price.

[tulak]

Quote:

Originally Posted by Senator I wonder if Scotland ever met the criteria to ever actually get into the EU? Many countries in the EU are there for the handouts, Greece being one.

This is a misunderstanding of how the EU works. The problem with Greece isn't because they are part of the EU. The problem with Greece is because they are part of the Euro.

Looks like a great buying opportunity to me. Odds are I'll buy something by market close. Still have a few hours to figure out what.

[audreyh1]

Quote:

Originally Posted by dixonge 2.5% drop? That wasn't so bad...

And a big chunk was just to reverse the rally from yesterday.

[Another Reader]

Quote:

Originally Posted by audreyh1 And a big chunk was just to reverse the rally from yesterday.

Yep. So far, the "panic" looks like a whole lot of nothing.

[imoldernu]

Quote:

Originally Posted by Senator The world is going through a Global equalization scheme. Any person, from anywhere, can go anywhere. Countries that are the most generous will have to adjust to huge population growth, until they stop being the most generous. Wages will be equalized globally, as we have seen over the past 20 years. Countries can move out of the "world union", but eventually they will succumb and be part of it. It will be a different world in the coming years...

+1 Well said.

[kcowan]

We had lunch beside of young lady from Frankfurt and she said that the economic centre for the EU will switch from London to Frankfurt. Could explain the hits the banks took.

[RAE]

Quote:

Originally Posted by donheff I was surprised at how small the drops were, especially after he run-up occasioned by the bogus "stay" poll results. I expect the wailing and gnashing of teeth across the EU over the coming months will cause a continuation of the volatility we have grown accustomed to..

Yep, I expect more volatility also. Hard to predict how this will all shake out over the long-term, as there is really no precedent for something like this to fall back on. If more countries decide to hold referendums on exiting the EU in the coming months/years, which many think is possible (maybe even probable), then I think world markets could be shaky for a fairly long period ahead. Markets hate uncertainty, and there could be plenty of that ahead for Europe after yesterday's vote.

[6miths]

Quote:

Originally Posted by kcowan We had lunch beside of young lady from Frankfurt and she said that the economic centre for the EU will switch from London to Frankfurt. Could explain the hits the banks took.

This seems incredibly unlikely for a number of reasons I can think of. Switzerland doesn't seem to have done too badly on its own. I'm not saying that a young lady from Frankfurt might have some bias in making the call but...

[GTFan]

Looks like the Scots (and possibly N.I.) will be voting to leave the UK too, judging from all the interviews they've done with folks living there. Neither area is happy with their majority (in Scotland's case, overwhelming) stay votes being vetoed by England and Wales.

The real trouble here is the potential future breakup of the EU as a result, which will introduce a ton of uncertainty that markets don't like.

[YVRRocketSurgery]

Apparently Google is reporting the top EU related questions being searched on in the UK currently are:
What does it mean to leave the EU?
What is the EU?
Which countries are in the EU?
What will happen now we've left the EU?
How many countries are in the EU?

I don't know how accurate this is or how well it really represents reality in terms of how knowledgeable on the issues most Brits were heading into the vote. But it does illustrate the potential risk of having uninformed voters become the swing vote on a close vote that significantly impacts policy and economics.

[devans0]

Quote:

Originally Posted by marko I was at a cocktail party not long ago and a woman opined that "buying on a dip" was the equivalent of taking advantage of someone's misfortune and morally wrong. Of course, with a hefty trust fund paying her bills it might be easy to take the high ground.

I was at 50% in money market. That 50% went to help provide liquidity for the big money. I guess I am half moral/immoral. I have noticed that morality depends if booze glasses are half full or half empty.

[NW-Bound]

Quote:

Originally Posted by marko I was at a cocktail party not long ago and a woman opined that "buying on a dip" was the equivalent of taking advantage of someone's misfortune and morally wrong. Of course, with a hefty trust fund paying her bills it might be easy to take the high ground.

Quote:

Originally Posted by audreyh1 LOL - did you explain that if you didn't buy at the dip, someone else would buy even lower? Buyer's strike = even lower prices. If someone needs to sell, they need to sell! And they can always choose not to sell until the like the price.

+1

This trust fund baby is an ignoramus!

If there were absolutely no buyers, the stocks would have gone to zero, as it means nobody wanted them. Would the sellers rather get a low value or zero?