Europe... yes or no for investors?

BananaRepublic

Doubtless a Brexit would cause wobbles, but the leaving would take a number of years, presumably with us trading as usual in the meantime. We risk losing our democracy, to a group of unaccountable bureacrats, voting for their own interests. Big business favours the EU because it provides a source of cheap labour. Why pay expensive British workers when you can employ cheaper East Europeans? Leaving would be better for democracy, and I would hope for our businesses, as it would mean less bureacracy, less pressure on our services such as housing and the NHS.

ColdIron

Woodford's view

https://woodfordfunds.com/insight/brexit-economic-implications/

Linton

It shouldnt matter to an investor whether the UK stays in the EU or leaves. Not because the outcomes will be the same, but rather because the risks can be contained by appropriate allocation of resources. My growth portfolio is now down to about 16% UK. I would like it lower but find it difficult to ignore UK Small Companies.

But of course there are other aspects to life than the size of ones portfolio. My own view is that because of technology and economics global integration is inevitable barring an economic collapse leading to a world of warring small states or possibly the increasing irrelevance of national governments in the face of powerful multinationals. The problem now is how to allow this integration to happen as painlessly as possible. My belief is that the EU is the best route forward available to us at the moment. However such musings are best left to another forum.

Snakey

I look at it in terms of spending the money once you've finished saving it. Anybody hoping to, I dunno, buy a holiday home in Spain (or retire there), say, might find it harder and/or more expensive without the free movement of capital and other reciprocal arrangements.

Closer to home, I do think an exit would hit our share prices, whether directly or indirectly (by making UK businesses less profitable). However I speak from a position of near-total ignorance of finance in this context and, as Linton says, there'd be nothing to stop us investing in other stock markets just as we do now (theoretically the EU could put barriers up, but unlikely).

What I am mildly concerned about is that the US want us to stay in. If we leave, will we lose our position as their pet dog? At the moment we have a foot in each camp and this allows us to punch above our weight in some respects. If things change we could end up being of no interest or relevance to anybody. I can deal with no longer having an Empire, but I wouldn't want the UK to become a total backwater.

I have to say, I had assumed the consensus on here would be to stay! I will be watching people's views with interest as part of educating myself on the subject. It will probably be quite difficult to find informed opinions out in the real world as I suspect most people know even less of what's going on than I do and will vote solely along the lines of "I don't like foreigners" or "somebody told me I won't be allowed to go clubbing in Magaluf any more if we exit". The trouble with democracy is, indeed, that everybody has a vote...

jamesd

digannio wrote: »

Most of what I've read suggests that long-term it would be better for investors to vote to stay in Europe. Of course there are many other reasons for opting to stay in or leave the EU, but from an investor's points of view I believe staying in is the only way to go. What d'ya think?

It's irrelevant. UK investors can and should invest globally. In or out of the EU doesn't affect that, though it may increase or decrease the reward for the UK or non-UK portion and favour one over the other.

In the short term there will be volatility and potentially opportunities to exploit.

6022tivo

Unfortunately, the uneducated will vote for leaving the EU, as we have more uneducated people in the UK than educated, we will be leaving unfortunately.

Referendums annoy me as we are supposed to have the most elite educated people in government who are supposed to understand the benefits and pitfalls of being in/out the EU. 90% of the voters have no idea of the main benefits or disadvantages of being in a single market.

Also, without being too negative, please stop using the term Brexit - it is one really annoying word...

prosaver

6022tivo wrote: »

Unfortunately, the uneducated will vote for leaving the EU, as we have more uneducated people in the UK than educated, we will be leaving unfortunately.

Referendums annoy me as we are supposed to have the most elite educated people in government who are supposed to understand the benefits and pitfalls of being in/out the EU. 90% of the voters have no idea of the main benefits or disadvantages of being in a single market.

Also, without being too negative, please stop using the term Brexit - it is one really annoying word...

get of your high horse . the uneducated will vote to stay in as they read the newspapers and listen to the bbc
btw give us some data, we are get really bored..yawn

jamesd

6022tivo wrote: »

Unfortunately, the uneducated will vote for leaving the EU, as we have more uneducated people in the UK than educated, we will be leaving unfortunately.

Would you be attempting to assert that those who will vote to leave are uneducated as an insult to them?

How would you define uneducated? No primary school education? No secondary school? No first degree? No higher degree? No apprenticeship? Disagreeing with your views on leaving the EU?

6022tivo wrote: »

90% of the voters have no idea of the main benefits or disadvantages of being in a single market.

The EU is not just a single market. It is also a long term transfer of sovereignty plan, a supreme court that has precedence of the the UK, a set of human rights principles and much more, including an agreement that has no formal provision for leaving the EU and a commitment to eventually switch the the Euro as the currency.

markwilkinson

The "uneducated" as you call them, probably won't even bother to vote. Voting apathy is rife in this country.

Personally I think the vote will come down to which side is the most passionate - those passionate enough to vote.

Who knows which way that will go. Maybe the gold rampers will end up being right.

Keep_pedalling

There will be lots of uneducated voting on both sides, because when it comes to politics most people don't have a clue and will end up voting on gut instinct. For most people economics won't come into it.