“Sound as a Pound?” There is now plenty of conjecture about the prospects for UK’s Pound Sterling. Will the Pound’s post-Brexit plunge in the exchange markets continue? (As of Friday evening, it had crashed to 1985 levels.) Or will there be a Pound Rebound–making the Pound a “Buy”? (Some say that the divorce from the EU might eventually put the Pound in the same category as the Swiss Franc.) In the short term the weak Pound will mean strong exports from the UK. The shares prices of England’s car makers and woolens makers are likely to gallop. Tourism in the UK is also likely to boom, as American and Continental tourists swoop in for shopping sprees with Pounds that they’ve bought on the cheap. I predict that the tailors of Saville Row are going to build long waiting lists! But in the long term, a strong Pound would be negative for both manufacturing and tourism, but positive for their domestic consumers. As an aside, I do hold some Swiss Francs as a minor hedge. I might consider parlaying part of that into GB Pounds in a few days, if it looks like a bottom has been reached. But regardless, I’m still solidly in the Physical Silver camp! – JWR
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Over at Dr. Housing Bubble: The Mass Exodus of the Middle Class From California
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After Brexit, will the EU crumble?
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In a piece posted at Gold-Eagle, John Rubino asks: Will The European Union Just Dissolve?
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The Brexit fallout — the bloodbath starts with these stocks
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