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U.S. stocks rejoice over not-yet-passed Brexit rejection

Written By | Jun 23, 2016

WASHINGTON, June 23, 2016 – This will be a very short column. The reason: The outcome of the UK’s “Brexit” vote, being tallied by hand right now as we write this, is still in some doubt and no one really has a clue as to what will happen next in stock market action.

Read also: The ‘Brexit’ and interest rates: Black Swans on the horizon?

This popular vote—the average U.K. citizen’s opportunity to register his or her opinion as to whether Great Britain should remain or depart (aka “Brexit”) from the European union—was regarded last week as a slam-dunk for the pro-Brexit forces. That is, until pro-“Remain” in the EU PM Jo Cox was savagely murdered by an apparently deranged Brexit supporter. After initially remaining flat, poll numbers suddenly shifted back in favor of the “Remain”—i.e., the non-Brexit vote, at least according to the media and those all-important London bookies.

Read also: UK stages big-time Brexit debate that lays out the arguments

The vote was held Thursday, and both pollsters and bookies had strongly shifted in favor of a “Remain” win. But word has been trickling out that TPTB (The Powers That Be) had been funding massive “Remain” betting with the bookies as a way of shifting sentiment, since it’s the wealthy TBTB who will clearly benefit the most from a European central government that must naturally diminish each country’s nationalistic and self-oriented tendencies in order to garner more and more power to itself. Sound familiar?

Read also: Orlando, Brexit roil markets. Plus: Microsoft buys LinkedIn

That’s because, in addition to the economic and nationalistic nature of this U.K. plebiscite, the Brexit vote, whichever way it goes, was also a proxy stand-in for the EU’s outrageous open-borders policy that has admitted tens of thousands of “refugees”—aka, illegal aliens—into the so-called borderless eurozone, whose numbers Europe’s indigenous population knows to include a substantial number of Islamofascist terrorists and fellow travelers whose goal is a 21st century Islamofascist crusade.

The U.K.’s Brexit vote is seen, at least by some, as a potential watershed event that could—if it goes through—mark the high-water point of the kind of “internationalist” and border-free government anti-nationalists, like current U.S. turncoat President Barack Obama, favor. Most non-elites in most countries around the world are against this nonsense, which, as they well know, will reduce them to pauper-status, if that hasn’t already happened. The elites don’t care, however, and hence, the battle lines are drawn.

Read also: Obama threatens Britain over ‘Brexit’ vote

Yes, this seems like pure politics on the surface. But it’s economic politicking at its most serious. The ultimate aim of the wealthy elite and their in-the-pocket political toadies is World Government, which, in the end, will amount to a New Feudalism in which the wealthy will govern the peasants as they see fit. The general populace has been slow to grasp this serious fact, and they may be too late to stop its progress. But its ultimate consequences will not be pleasant.

Brexit or no, this largely Western movement back toward nationalism is not going to go away and may end violently and perhaps even inconclusively. This is precisely what’s been driving 2016’s markets crazy and largely uninvestible, if, at times, eminently tradable as stocks bounce to-and-fro, driven not by charts, logic or legitimate valuation, but by polls, often false news reports, rumors and just plain white-knuckle emotion.

Read also: UK Brexit-related assassination tanks Thursday gold trade

Yes, stocks closed sharply up Thursday as markets began to breath an advance sigh of collective relief that the pro-Brexit vote will fail. But what if traders and investors wake up Friday morning only to find that the pro-Brexit vote actually managed to eke out a marginal win?

The answer: You and I don’t want to be there. But if we are (and the Maven is), we’ll need to be prepared for some heavy drinking Friday evening.

No trading diary today. We enjoyed the rally, whether it was real or not. But we dread the days and weeks to come, as summer market action hasn’t been very positive lately, usually commencing in July.

We’ll be on the road for a week, beginning shortly before noon Friday, so expect columns to happen when they can. In the meantime, we’ll all hope we still have portfolios the next time we look at our accounts.

UPDATING: As we near 10 p.m. EDT, futures and trades in pounds sterling have begun to fluctuate wildly as early voting actually suggests strong support for the Brexit. It will be a tough Friday morning in Europe, either way and could be rough for U.S. traders as well as machine trading via HFTs will swing wildly on each and every rumor. Keep that Maalox close at hand.

Terry Ponick

Biographical Note: Dateline Award-winning music and theater critic for The Connection Newspapers and the Reston-Fairfax Times, Terry was the music critic for the Washington Times print edition (1994-2010) and online Communities (2010-2014). Since 2014, he has been the Senior Business and Entertainment Editor for Communities Digital News (CDN). A former stockbroker and a writer and editor with many interests, he served as editor under contract from the White House Office of Science and Technology Policy (OSTP) and continues to write on science and business topics. He is a graduate of Georgetown University (BA, MA) and the University of South Carolina where he was awarded a Ph.D. in English and American Literature and co-founded one of the earliest Writing Labs in the country. Twitter: @terryp17