If You Own This Asset, You Could Soon Have Your “Head Handed to You”
Europe is unraveling.
Five months ago, Great Britain voted to leave the European Union (EU). The decision shocked investors around the world. It erased more than $3 trillion from the global stock market in just two days.
But the panic didn’t last long.
Two weeks later, the S&P 500 set its first new high of the year. It’s now 4% higher than where it was the day before Brexit. The FTSE 100, Britain’s version of the S&P 500, is 7% higher.
Still, investors haven’t completely forgotten about Brexit…
You see, Britain voted itself out of the EU because many people in England are fed up. They’re tired of making low wages. They feel like the EU experiment has failed them.
In a way, they voted against globalization and in favor of nationalism. They voted to take their country back.
Now, we aren’t here to discuss whether British voters made the right choice. Instead, we want to focus on what Brexit could mean for the rest of the world going forward.
• The world’s most powerful governments haven’t done their jobs…
After the last financial crisis, central banks did everything in their power to fix the global economy.
They cut interest rates more than 670 times. They’ve “printed” more than $12 trillion.
These measures were supposed to “stimulate” the global economy. But the U.S., Europe, Japan, and China are all growing at their slowest rates in decades. Instead, all these policies have done is lift financial assets.
Take stocks, for example. Major U.S., European, and Japanese indexes have all set record highs in the past couple years.
It’s no wonder so many working-class people now feel like “the establishment” doesn’t work for them…or that “the system” is rigged.
Going forward, we expect more people around the world to demand radical change. We could even see more countries enclose themselves from the rest of the global economy like Britain just did. One of the world’s biggest economies could even do this just four days from now.
• Italy will hold a constitutional referendum vote this Sunday…
Nick Giambruno, editor of Crisis Investing, says this upcoming vote could radically reshape Italy.
According to Nick, it would basically be a sign of approval for current Prime Minster Matteo Renzi if the Italian people vote “Yes” on Sunday.