By now we all know what Brexit means: it marks the day that the British electorate voted to leave the European Union, defying prognosticators and the establishment. An EU recession has likely been triggered. The U.S. Fed is rumored to be considering ways to add additional stimulus on this side of the pond.
While this is just the beginning of a two-year negotiation over the terms of departure from the E.U., the decision sent fireworks across the globe. With our own Independence Day right around the corner, could the Brexit drama help the U.S financially? According to Forbes Magazine, the answer is probably yes. Here’s how:
- The United States will see some capital inflow.
- New York City will gain in the world financial market share.
- Our international trade will increase somewhat.
- If current low mortgage rates hold, Brexit could help ignite a boom in mortgage refinancing, which helps the overall economy, whether you need a mortgage or not.
- Oil prices are expected to remain low, helping U.S. drivers continue to save at the gas pump.
- Gold typically benefits when fear is running higher and that was certainly the case during the recent downdraft in stocks. The British drama only solidifies the trend.
- With the strength of the dollar and weakness in the British pound, travel to the U.K. could become cheaper, which provides a terrific opportunity for American tourists who like to travel (like me).
While we still don’t know what the overall impact of Brexit will be on the U.S. economy, I believe it will be positive. When you begin feeling that positive impact on your personal financial picture, maybe you should think about purchasing a new home or home away from home in Montecito, Hope Ranch or any of Santa Barbara’s upscale communities. On the other hand, if you believe it’s time to sell your property, I’m here to help. So, either way, have a look at my comprehensive website, then call me at 805.886.9378 or email me at Cristal@montecito-estate.com.