Friday, June 24, 2016

Don't Fear Brexit


In 1989, as we were hearing about the benefits of the "United States of Europe", we can clearly recall our skepticism over the noble idea of creating a common currency throughout Europe without a clear political union to go along with it.  Was it reasonable in an area so geographically tied together to have a common currency to allow business to transact their trade across the many borders in a more effective way?  Absolutely!  Yet it seemed impossible to us to think that the myriad cultural differences throughout that same geographic region would allow for that necessary political cohesiveness.  Essentially, our thoughts were that without a U.S.-style constitution, it seemed improbable, at best, that the experiment would succeed.

Yesterday, voters in the United Kingdom dealt a devastating blow to the experiment of a "United States of Europe" with their vote to leave the European Union.  The "elite" of Europe, and throughout the world, including America, warned of cataclysmic ramifications if the vote to leave were to win.  We believed all along that was ridiculous and continue to believe so in the wake of the approval by the British people to leave the Union.  Not only do we think that it is ridiculous to think that Brexit would be cataclysmic, we believe the historic vote is a step in the right direction towards exposing the failure of socialism in Europe and throughout the world!

Whatever negative reaction happens in the markets today or over the course of coming weeks and month, related to fear over this movement, we believe it will be short-lived.  We stand ready to take advantage of any weaknesses to add to our holdings in great, innovative companies run by the solid entrepreneuers who make our capitalist system so vibrant.

Stay tuned for more updates on this amazing turn of events.