The Brain Trust here at Research and Analysis Central sees a scenario where the chickens that were hatched during the previous forgettable year come home to roost with some disturbing yet potentially profitable possibilities. The EU’s first divorce proceeding will unravel messily. Despite the typically bureaucratic and regulation strapped Brusselsesque Article 50 of the Lisbon accord, which like so much of EU legislation and regulation, sounds well intended, but is so practically unwieldy that reality follows its, rather than the mandated, directions and outcomes, Brexit will result in battles and disputes over the bill (in the neighborhood of 50 billion Euros) likely toppling the hapless Ms. May. Remember this paragon of ideology and political philosophy was against the Brexit, fell into the PM’s job by virtue of the stunning reversal and departure of her predecessor and then promptly saw the light and became the beacon FOR the Brexit. Sensing an opportunity to snatch defeat from the jaws of victory she called a snap election only to lose most of her political capital. She ain’t long for this gig and she is likely to bring down the GBP even further that the 20% decline against the US dollar already experienced since the brilliant decision to leave the EU. And it is not likely to be good for the Euro either. As other nations see the course of the divorce proceedings, they too will consider the potential benefits of living free of the suffocating and expensive regulatory bonds of Brussels and Strasbourg. Our models indicate that chaos that ensues in the euro zone will have a strengthening effect on the US dollar.
2018 capital market opportunities
Daily Analysis - 01/01/2018