Brexit and the Consequences

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Atilla

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Nov 15, 2006
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I don't think that anywhere has high interest rates just now. We have that problem in Spain.

People are buying into shares for that reason but, wait! That entails risk. Company dividends will, eventually, affect prices. Then what?

Yes indeed and this is the reason FTSE100 global index is rising. With fall in pound and easy money with it no where else to go FTSE100 is the best in fact the optimal place to park ones cash.

Can't see the bubble popping with Japan and the UK providing more liquidity. US bound to follow soon along with China.

Just make sure one buys into companies with div cover > 2, I reckon.


Impact of Brexit still to be hit. We simply getting a taste of it at the moment.

When the fan distributes the poohey stuff Brexiters will say we told you so but the ultimate test will be who comes out the other end cleanest. Exciting times. Cusp of a new era we are at :rolleyes::whistle:)
 

Atilla

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Inquisitor

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Nov 20, 2003
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You have a highly polarised view, what about the shameful lies of the Remainers stating that the FTSE would collapse on an out vote as well as a whole host of other statements most of which have been wrong?

It is still far too early to make any real assessments of what the long term effect will be. Your analysis is akin to attempting to measure a long term monthly or even yearly trend by reading intraday time and sales data.
 
Likes: Oscar Reed

Atilla

Well-known member
Nov 15, 2006
18,073
2,472
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You have a highly polarised view, what about the shameful lies of the Remainers stating that the FTSE would collapse on an out vote as well as a whole host of other statements most of which have been wrong?

It is still far too early to make any real assessments of what the long term effect will be. Your analysis is akin to attempting to measure a long term monthly or even yearly trend by reading intraday time and sales data.

FTSE250 did collapse and if not for actions of BoE the index would be at a very different level to what it is at now.

Political outcome has also been considerably different to what the Brexit clowns led with.

If any of those clowns were in charge now, you'd also see another level for the two FTSEs.

Having said that, glad to see the back of Osborne and find Theresa May a superior upgrade to David Cameron.
 

Atilla

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Nov 15, 2006
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Wots tis all about den?

Stuck With U.K., Billionaire Li Warns Brexit Pain to Last Years

Li has much riding on Britain as the country is the biggest profit generator at the billionaire’s business empire. His comments came hours after the Australian government signaled it would block a bid by one of his units for a local electricity distributor, a deal that could have helped the 88-year-old tycoon diversify away from the U.K.


Shouldn't this CEO tycoon be investing in the UK and not away from it? Just asking like?

Seems to me like we are now exporting our foreign investments along with the kitchen sink! :(
 

neil

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Nov 19, 2001
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Atilla

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Rate cut following Brexit vote deepened U.K. pension deficits

Declining birth rate, aging population, rising tax burden, lower GDP, rising debt. Baby boomers coming home to roost.

A fund run by Woodford Investment Management LLP has sold its 160 million-pound ($209 million) stake in defense contractor BAE Systems Plc, citing concerns over its underfunded retirement plan in a move that shows how the U.K.’s growing pension crisis is alarming investors.
The CF Woodford Equity Income Fund said in a post on its website that it had unloaded its stake in BAE, which a spokesman pegged at 0.9 percent. The fund, run by Neil Woodford, also recently offloaded a roughly 300 million-pound holding in U.K. telecommunications giant BT Group Plc, whose pension deficit has also swelled.

The Bank of England’s Aug. 4 interest-rate cut, which followed the U.K.’s vote to leave the European Union, has reduced the returns that pension funds receive by pushing yields on government bonds to record lows. The total deficit of U.K. defined-benefit pensions has reached a record 1 trillion pounds ($1.29 trillion), after bond yields plunged further on the bank’s failure to buy back sufficient government bonds on Tuesday, according to a report Friday by pensions consultancy Hymans Robertson.

 
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