Stock market has best week of '16. Was Brexit scare a scam?

Discussion in 'Politics, Religion, Social Issues' started by 1458279, Jul 1, 2016.

  1. 1458279 Suspended

    1458279

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    #1
  2. Desertrat macrumors newbie

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    The stock market operates on the free money to the "Big Boys" and is sensitive to rumors. Major down events come about from uncertainty. "Risk off" mode causes selling. Now that the Brexit is understood to be a lengthy process instead of some instantaneous event, it's back toward business as usual.

    But short the Pound Sterling. For now, go long on the US $, since several Eurozone economies are in deep doo-doo.
     
  3. MadeTheSwitch macrumors 6502a

    MadeTheSwitch

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    Right, it was a scam. And all the major stock markets around the world were in on it. :rolleyes:

    I'll explain how stock markets work to you. When people get fearful they pull their money out causing stocks to go down. When stocks go down other investors see that as a sale and take advantage of the discounted rates causing the stock's value to go back up. Basic supply and demand. And the fact that so much of this is done by computers now down to the millisecond, neither the decline nor subsequent rally are surprising. However the story is not done yet. There will be other declines and possible rallies down the road. It all depends on how things go. Remember this is a long processs, not an overnight one.
     
  4. aaronvan Suspended

    aaronvan

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    The plutocrats, internationalists, financiers, aristocracy, and political elites tried and failed to spread anti-Brexit fear, uncertainty, and doubt.

    Hail, Britannia.
     
  5. Desertrat macrumors newbie

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  6. LIVEFRMNYC macrumors 603

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    It might go right back down once implemented. That was just the initial reaction.
     
  7. mrkramer macrumors 603

    mrkramer

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    I think it was an initial fear that things would go bad quickly, now the markets have realized it will be a long process which will give enough time for businesses to adjust so only the UK's economy tanks when it is implemented rather than the world's.
     
  8. zioxide macrumors 603

    zioxide

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    Because the market isn't in Britain?

    Britain is still ****ed. The pound hasn't gained back any of the value it lost.

    But it shouldn't surprise anyone that understands economics that the US market rebounded after dropping. Buy low, right?
     
  9. 1458279 thread starter Suspended

    1458279

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    I don't see why some are suggesting that the UK will fail. Has the UK ever done well without the EU? Has any nation ever done well without the EU? I guess (hope) we have a chance to learn.
     
  10. aaronvan Suspended

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    Norway and Switzerland do rather well outside of the EU.
     
  11. cube, Jul 2, 2016
    Last edited: Jul 2, 2016

    cube macrumors G5

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    Switzerland is not in the EEA, so that imposes constraints on it as a financial center.

    This is where London can lose. There can still be a loss between EEA and EU also.

    Some airlines and other companies could lose a bit, too. And some could be forced to reincorporate elsewhere.

    UK will probably lose its special deals with the EU if it remained in the EEA.

    And to be in the EEA, it will probably have to be accepted by the EFTA countries. Apparently, this is not a given in the case of Norway, for example.
     
  12. Renzatic Suspended

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    The UK could do well outside the EU as well.

    The problem is that they've spent the last 30-40 odd years integrating themselves into the EU economy, only to turn around, scream screw it, then divorce themselves of it over the course of a day without any real plan on how to disentangle themselves from what they've helped build.

    So it isn't an issue that the UK needs the EU, it's that their sudden unconsidered haste to leave it could end up screwing them over pretty badly in the mid term.
     
  13. 1458279 thread starter Suspended

    1458279

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    The video I posted gets into Switzerland and exposes the EU for what it really is. I guess the "sky is going to fall" people don't like mixing these facts in with the propaganda.
     
  14. cube macrumors G5

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    Switzerland now has a big headache because the people voted to restrict freedom of movement and this puts in jeopardy every bilateral agreement with the EU.

    Also, to get into the EU, Switzerland would have to raise the standard VAT rate from 8% to at least 15%. The UK does not have this problem. I think Bank secrecy was a main issue too.
     
  15. thermodynamic Suspended

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    ADHD, the media found something else to report? Or that things usually take time to develop?

    Or especially if nothing fell after the initial issue took place?

    I doubt there's a conspiracy theory worthy of a tinfoil hat going on.

    Especially as Occam's Razor(tm), psychology has more to do with driving situations. Or, in English, "kneejerk reaction to the best of ability".
     
  16. senseless macrumors 68000

    senseless

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    Did individual retail investors push the market down with panic selling or was it program trading by the big boys?
     
  17. Desertrat macrumors newbie

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    Compare the US stock market with others. We're up because of uncertainty as to the effects of Brexit. We're seen as a safer place to stash money. As long as the Fed's monetary policy is for free money, the US stock market is a safer place than elsewhere.
     
  18. thewitt macrumors 68020

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    I watch the currency exchanges, not the stock markets, to gauge the strength of economies in the eyes of those who really matter. Stock investments by major players can shift the markets too easily.

    Both the pound and the euro have remained strong against the dollar - meaning the banks are all still ok with what's happening.
     
  19. Dmunjal macrumors 65816

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  20. HEK macrumors 68030

    HEK

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    Hey no scam, rich people sold short and made a mint in just a week's time. How could that be a scam?
     
  21. hulugu macrumors 68000

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    Your questions are straw men. No one needs the EU, but the whole point of the European Union was to create economic advantages that helped everyone—in theory. Now, without the advantages of the EU, Britain will still endure all the disadvantages of the modern economy—anyone who thinks that London was going to become a middle-class city after the Brexit is dumber than they look—with fewer advantages on travel and trade.

    Yep. The US market had a spasm, but we have to see how this will trend long term.

    That's an interesting way to look at it. Have to check that out more.
     
  22. mrkramer macrumors 603

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    Yes, but do you really think the world hasn't changed in the 40-50 years since they joined?
     
  23. aaronvan Suspended

    aaronvan

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    I just read that the EU is threatening Poland with sanctions because of some changes the Poles made to their Supreme Court. Can you imagine foreigners giving us orders about our SCOTUS? (Incidentally, Poland seems singularly unimpressed with the EU threats.)

    This is not a joke: Once a month, the entire EU Parliament packs their kit and moves to France for a couple days.
    Just to keep the French happy. This is so colossally idiotic it sounds like something Donald Trump would dream up. It sounds like an Onion headline. But it's true.

    The EU is ridiculous and absurd. It should be blown-up, completely.
     
  24. cube macrumors G5

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    The threat against Poland is because they would be violating their own constitution.
     
  25. appleisking macrumors 6502a

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    Why would it be a scam? The markets reacted over very unexpected news in a downward fashion, but have more or less rebounded, although the pound still remains at a 30 year low and gold is pretty high too. Markets literally fluctuate every second over news. They most likely stabilized because a. now for sure the Fed won't raise rates, b. Britain hasn't actually left yet.... it's a two year process. Sure there's a lot of uncertainty going around, but Brexit hasn't had any adverse economic effects yet since it hasn't happened yet.
     

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