BRITS LEAVING THE EU
AS FORECASTED BY SOCRATES
Deutscher Text (frei übersetzt durch Google) – Click Here
June 26, 2016
Last week in my Free FDNN letter with regard BREXIT, I wrote:
“With the BREXIT vote on Thursday this week, this is probably one of the most volatile and therefore the toughest week to make trades in” - - and it was.
Prior to the vote on Wednesday June 22, 2016 in his Blog Martin Armstrong (MA) wrote:
“Our computer [Socrates] shows that BREXIT should win”.
The collective decision of the British electorate to “Leave” the European Union (EU) will result in an improved economy for the Brits although; this will not happen overnight and will take some time to occur. In any event moving forward, clear heads must prevail.
Britain needs Europe and Europe needs Britain. The British self-determination policy might have short-term negative effects but as time goes by, it will greatly benefit Britain. Being first out of the gate the overall result for its populace will be - - - the Brits will benefit the most from the Leave.
Although the Brussels elite are trying to put on a good face for the remaining EU members, the EU will not survive. Brussels will never admit that they are wrong and therefor, eventually the EU will collapse and die.
The anti-democrats in Brussels will trey and throw up all kinds of obstacles to delay the inevitable.
As MA says, the elite will continue to throw up obstacles but, Article 50 of the 2009 Lisbon Treaty is the exit button for EU members. The Lisbon Treaty allows a country to start formally withdrawing from the European Union. Once Britain has activated this clause, which it now has, it has two years to negotiate its departure with the remaining 27 members of the bloc. Among the terms to be discussed such as trade tariffs and freedom of movement.
The mainstream opinion assumes that banks will leave London in a hurry. But why should they? The regulations from Brussels would disappear and I think that could even strengthen London as a financial center. The Sterling has lost a lot of its value. While this increases the cost of imports, it makes exports very interesting. The weaker currency, if it remains so weak, can be seen even as an economic benefit. More exports, more jobs, more investment for new industries. In addition, the British property market will be of interest to foreign investors if the pound is weak therefore, more construction and again more jobs.
Britain will be a great place to do business!
It is also my view that the British Leave will eventually be a good thing with regard restructuring the world economy. The Leave is only a temporary setback for the world economic planners and in time they will realize the Leave was very JUST and to the benefit of future generations.
Post Leave, while currencies are swinging wildly, the clueless Central banks are of course very concerned about financial stability but, are not sure at all of what they should do during the crises which is increasing day by day. What they do not understand is that there is very little they can do while the EU is burning and dying as I write this.
Many EU members are telling the EU to change course and reform or risk total collapse. Yesterday six more countries indicated they want to hold referendums to exit the EU – France, the Netherlands, Italy, Austria, Finland and Hungary.
The collapse is happening at a fast pace and it will be very interesting to see how the Spanish Elections turn out today, to give us an idea what that country might want to do in future?
In any event, the immediate aspects at hand to be considered are: 1) The domestic United Kingdom (UK) politics; and 2) The international economic and political consequences.
US$ denominated securities and Real Estate will benefit and Commonwealth countries will benefit also. As a Canadian, I expect Canadian Real Estate market to do extremely well.
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To Preface the following: The immediate reaction of the markets on Friday was a rude awakening and a reaction of panic but, the markets will flip and settle down when the majority of investors realize, the crisis is not in Britain but, a European and worldwide crises as well and it will take time to be resolved.
We now have to approach our future Trades with caution but, without being panicked. Investors worldwide will sanely and quietly revaluate the future of the markets.
It is difficult to work up any specific points to consider, but let’s start with pondering the following:
- Uncertainty has increased and can be massive in the medium term however, the appetite for Risk will return again;
- Gold is an alternative currency in times of uncertainty but, can it sustain these high price levels for now;
- AUD and CAD are probably better than Euro but is it better than the USD;
- Interest rate increases in the US are still on the table;
- ECB with possible further unconventional measures such as more negative interest rates;
- Will Brussels be able to rethink and be able to change its policies to prevent the collapse of the EU;
- Will Money Flows from Europe, India and worldwide create more strength in US bonds and US$ denominated stocks;
- Is there a US bond bubble and if so, is it inflated to the maximum possible before bursting?
The short-term: With the return of sane un-panicked investor sentiment, the movement in financial markets will be very interesting this coming week and we have to be cautious.
Gold and Gold Miners: The price of Gold shot upwards last Friday as bitten by a dog in the behind however, once the markets settle down then the Gold Miners will become an interesting buy again. Currently technically as well as fundamentally, they are good long-term investments.
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Trader Level 2.0: On June 21, 2016 MA informed us about the new Trader Level 2.0 version will be launched soon publicly. The Trades we have made since January 15, 2016 were made only based on SOC Beta test preview version and the interpretation by MA based on his Trader Level 2.0.
MA has incorporated much more in the Trader Level 2.0 version. His goal is to provide a global platform that is fully integrated so that the same system can be used around the world and provide familiarity with looking at the Arrays and Prices in any market, to provide an instant perspective.
He together with Princeton Economics, is striving to provide a quality service that is impartial, entirely computer driven, and in that sense, independent of human opinion and emotions.
Ma suggests that this is the only way we can move forward and become STUDENTS of the market rather than complaining and looking for the next guru *.
* MA: “The days of searching for some guru who is never wrong, from an opinion perspective, are gone and only fools seek such ideals. We are heading into the eye of a financial storm that will topple governments. The future is being constructed before our eyes if we wake up and just look. The hardheads always lose everything because they are too stubborn and incapable of adjusting their investment strategy. Those looking to buy growth or value in equities will also lose their shirt for this is not a normal trading affair.”
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Trader Level 2.0 will be the only guru we will need to make money for our
We have to consider, that even with a LEAVE victory, it will take two years of negotiations to pull this off. It is not an overnight deal.
MA: “The computer [SOC] was correct in projecting a BREXIT victory. However, keep in mind that this will shake the EU and we should see the capital flows begin to intensify into the US dollar”.
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Yes, Friends it’s all about profitable trading!
Stay Tuned for the Socrates Trader Level 2.0 launch and our Next free of charge FDNN letter
Regards from Mining Interactive Corp. in Vancouver Canada,
Nick L. Nicolaas
Direct: +1 (604) 657-4058
Nick L. Nicolaas; Mining Interactive Corp. and its Associates (collectively referred to as NLN) are not registered advisers and do not give investment advice. NLN’s trading comments are an expression of opinion only. NLN may have an investment in some of the companies or trading instruments NLN mentions or writes about, nothing should be construed in any manner whatsoever as a recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While NLN believes all statements to be true, they always depend on the reliability of NLN’s sources. NLN recommends that you consult a qualified investment adviser, one licensed by the appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions and NLN urges you to confirm the facts on your own regarding any trades or companies NLN mentions before making important investment commitments. The “Trading Based on Martin Armstrong Socrates alerts” and the “Stock and Private Placement” alerts written and distributed by NLN do not, and cannot, constitute a recommendation to buy or sell any security.
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June 26, 2016