Article 50 has now been triggered by Theresa May and she has sent a letter to the EU to formally announce that the United Kingdom will be leaving the EU. When it was a leave vote last summer, not much actually happened to the pound, and whilst there was a slight fluctuation with the stock markets, the whole thing bounced back.
However, now that the UK has triggered article 50 there was the expectation that the FTSE 100 and FTSE 250 would falter in response to Brexit and Article 50 being triggered. However, this simply has not happened. Looking at the graph, the FTSE 100 is in better shape now than it was last year.
Likewise, the FTSE 250 is in the same position in that it’s better now than it was last year. The mass hysteria and the disastrous crashing of the great British pound in the face of leaving the EU simply didn’t happen.
The pound will not crash when the United Kingdom leaves the EU.
Two years from now when the UK does finally leave the EU, there will be no crashing of the pound. The pound will be in a much stronger position because the UK will be prepared for the hard days to come. There will need to be budget cuts to a lot of services. However considering an obscene amount of money is not being paid annually to the EU, the UK will have a large war chest at its disposal in terms of free cash.
Immigration will not be the issue it once was post Brexit
Considering that the UK will have full access to its borders against post Brexit, there will not be an influx of immigrants that there has been when it was part of the EU. Immigration is a key part to the prosperity of any country, there’s no denying that. However, under the EU, the UK has not had control of its borders and there was the principle of free movement from those in other countries. This resulted in people coming to the UK for the sole reason of claiming benefits. This will not be an option for them when the UK has left the EU. The UK will ultimately be saving a large sum of money since they will not be forced to accommodate those that want to land in the UK solely to bleed the country dry and have no intention of getting a job.
The UK really is heading towards a tough time. However, it will once again become a powerhouse that it formally was and the exit from the UK is a step in the right direction.