UK Votes For EU Exit - Stock Markets Around The World Crash

[k290]

Don't panic! Hang in there everyone.

Looking at my stocks right now its not a pretty picture. But it just means equities are on sale.

http://www.reuters.com/article/us-global-markets-idUSKCN0Z92MZ

[lemanfan]

Let's wait a week before selling anything.  But perhaps there is something to buy cheaply on Wall Street later today?  :)

[11ducks]

I put $50 into my first ever investment in gold yesterday- after fees, I've made 33c in a day. (= a 240% return p.a.) I feel so savvy. But yeah, scary times for the Brits.

[2Birds1Stone]

I am glad to have a position in gold/silver this year.

[CodAlmighty]

Let's wait a week before selling anything.  But perhaps there is something to buy cheaply on Wall Street later today?  :)

I was thinking this. Unfortunately I'm not confident enough to have a 'flutter', so I'll just keep everything where it is in index funds. No doubt everything that occurs over the coming weeks will just appear as a little blip on the graph in 20 years’ time.

[ReadytoLearn]

Decision time....with the decision on Brexit, I assume VTIAX will be hammered today, and there will be an opportunity to buy. I am 75% VTSAX and 25% VTIAX with my stock holdings. Those plus cash, is all I hold.  I have a ton of cash on hand, but I didn't want to grow my international holdings.

 As a buy and hold kind of guy, I have no idea about stuff like this:
http://www.cnbc.com/pre-markets/

I'd much rather buy VTSAX from here on out.

Thoughts? (Yes this is market timing, yes I hate it, but the cash had been piling up from company stock sales recently.)

[MsRichLife]

I am glad to have a position in gold/silver this year.

My gold and other hedging positions covered nearly all my stock market losses today. Only down 0.10%.

[gggggg]

I'll buy extra if it drops substantially. Bogo.

[kpd905]

Looks like this is a crappy time for me to be saving for a down payment.  Wish I could throw all that cash in the markets when it drops.

[2Cent]

I have to admit to a certain amount of panic selling myself this morning, I put in sell orders for two of my UK funds before the market opened (anticipating a sell off and planning on timing the market).  However it turns out those orders won't be executed until lunch time so I'll suffer the full drop and can't cancel.

How did that happen? Is priority given to others? That seems quite unfair. Or did they just put their orders in even sooner?

[Leisured]

To get things in perspective; there is no comparison between Brexit and the GFC. The GFC did real, large scale damage to investments and investor confidence, while Brexit means that a functioning Britain leaves the EU and continues as a functioning nation state outside the EU,  like Norway and Switzerland, which are also not in the EU. The sky will not fall in.

[lemanfan]

Damn this country and it's public holiday. Sweden that is.  Where I live.  Due to a public holiday our stock market is closed today, so I cannot buy local stocks in the initial panic. :)

[protostache]

To get things in perspective; there is no comparison between Brexit and the GFC. The GFC did real, large scale damage to investments and investor confidence, while Brexit means that a functioning Britain leaves the EU and continues as a functioning nation state outside the EU,  like Norway and Switzerland, which are also not in the EU. The sky will not fall in.

Maybe. Maybe not. As far as I can tell this is sort of a unique event in modern history so it's hard to tell what will happen. I've read some theories this morning this could trigger some latent issues in the bond market and cause the same kind of thing we saw in the GFC.

We're just going to have to wait and see what happens.

[onlykelsey]

Damn this country and it's public holiday. Sweden that is.  Where I live.  Due to a public holiday our stock market is closed today, so I cannot buy local stocks in the initial panic. :)

You guys always throw a great party down in Battery Park here in NYC though :) Hoping to get out of work on time and practice my swedish.

[MMMarbleheader]

I have a lot of VASGX, always thought I was over exposed on international. Was going to re balance soon too. Ugh.

[Giro]

What is everyone buying?  I was thinking purely international but now I am leaning towards just a balanced buy.

[onlykelsey]

What is everyone buying?  I was thinking purely international but now I am leaning towards just a balanced buy.

I was planning on buying my normal stuff, overwhelmingly VTSAX.  But because I just maxed for 401K, I'll only be buying taxable for the rest of the year, so I should probably give it a fresh look.  It seems like a lot of the transactional costs of a potential UK exit will be borne by all multinational companies, regardless of where they're based, so I'm not sure how much of a differential there will end up being in performance.

[Late_Bloomer]

Ok obviously the smart thing to do would have been moving investments into treasuries before the vote, leaving one free to buy during this first week, or perhaps longer. And once the dust settles, shifting back to equities.

So am I just not informed about global events as I should be? Why didn't I see any reports regarding the UK's deliberations that lead to the vote? I presumed it was a surprise because it's being reported as a global shocker. The media's words, not mine. Although the time for making a move has passed, I wonder if I should have known this was upcoming.

Sadly, I have no spare cash to start buying today.

[onlykelsey]

Ok obviously the smart thing to do would have been moving investments into treasuries before the vote, leaving one free to buy during this first week, or perhaps longer. And once the dust settles, shifting back to equities.

So am I just not informed about global events as I should be? Why didn't I see any reports regarding the UK's deliberations that lead to the vote? I presumed it was a surprise because it's being reported as a global shocker. The media's words, not mine. Although the time for making a move has passed, I wonder if I should of known was upcoming.

Sadly, I have no spare cash to start buying today.

you probably shouldn't be too surprised.  Odds were on remain yesterday, but not strongly, and they haven't been routinely.   Here are the last 30 days/6 months (toggle between them) of polls: http://www.bbc.com/news/uk-politics-eu-referendum-36271589

[ChaseJuggler]

Sold almost all of my bonds this morning buying mostly VEA.

[fattest_foot]

"Crash" is kind of a strong word. The US markets have only lost about 2.5% so far, and it looks like the UK markets have lost about the same.

Sounds more like the media overhyping it again. By next week I imagine we'll be right back where we were.

[tralfamadorian]

I love it when stocks go on sale. 

[cheapass]

Let's wait a week decade before selling anything.  But perhaps there is something to buy cheaply on Wall Street later today?  :)

Fixed it for you.

[fattest_foot]

I love it when stocks go on sale.

This isn't even really a sale. I was expecting a 10%+ drop. 2% is basically just shedding the gains from a week and a half ago.

[Slee_stack]

Meh.  I bought a little Vanguard fundage this morning, but timing anything is silly.

Having cash on hand is a bit silly too.  I guess we play small games for fun.

[tooqk4u22]

To get things in perspective; there is no comparison between Brexit and the GFC. The GFC did real, large scale damage to investments and investor confidence, while Brexit means that a functioning Britain leaves the EU and continues as a functioning nation state outside the EU,  like Norway and Switzerland, which are also not in the EU. The sky will not fall in.

Maybe. Maybe not. As far as I can tell this is sort of a unique event in modern history so it's hard to tell what will happen. I've read some theories this morning this could trigger some latent issues in the bond market and cause the same kind of thing we saw in the GFC.

We're just going to have to wait and see what happens.

It will be disruptive for a while but I agree with Leisured - once the various trade agreements and what not a settled over the next many years it will function normally.  The greater risk is that this is the first crack in the dam of the breaking of the EU as other countries may look to head down this path - that would be more calamitous. 

[tooqk4u22]

Ok obviously the smart thing to do would have been moving investments into treasuries before the vote, leaving one free to buy during this first week, or perhaps longer. And once the dust settles, shifting back to equities.

So am I just not informed about global events as I should be? Why didn't I see any reports regarding the UK's deliberations that lead to the vote? I presumed it was a surprise because it's being reported as a global shocker. The media's words, not mine. Although the time for making a move has passed, I wonder if I should of known was upcoming.

Sadly, I have no spare cash to start buying today.

you probably shouldn't be too surprised.  Odds were on remain yesterday, but not strongly, and they haven't been routinely.   Here are the last 30 days/6 months (toggle between them) of polls: http://www.bbc.com/news/uk-politics-eu-referendum-36271589

It might have been the smart thing in hindsight but it was a coin toss, basically the markets are giving back their gains from the past month or so which were driven by expectations that Brexit wouldn't happen.....because of this I think of it as a non-event...so what if my holdings are back to 30-60 days ago.

[Polish_Hammer]

The Bears have been looking for a reason to come out.  Big run up over the last few weeks, uncertainty in the US presidential candidates, uncertainty in Europe, etc.  By November we will see stability in who will be elected in the US, a better understanding of what Europe leaving the EU actually means and posied for a Santa Claus rally

[franklin w. dixon]

To get things in perspective; there is no comparison between Brexit and the GFC. The GFC did real, large scale damage to investments and investor confidence, while Brexit means that a functioning Britain leaves the EU and continues as a functioning nation state outside the EU,  like Norway and Switzerland, which are also not in the EU. The sky will not fall in.

Maybe. Maybe not. As far as I can tell this is sort of a unique event in modern history so it's hard to tell what will happen. I've read some theories this morning this could trigger some latent issues in the bond market and cause the same kind of thing we saw in the GFC.

We're just going to have to wait and see what happens.

It will be disruptive for a while but I agree with Leisured - once the various trade agreements and what not a settled over the next many years it will function normally.  The greater risk is that this is the first crack in the dam of the breaking of the EU as other countries may look to head down this path - that would be more calamitous.

More hilarious more like, as long as you're a nihilist I guess.

[czr]

Still hasn't broken Jan/Feb lows earlier this year but still a good opportunity to throw in some extra cash for the long-term.

[gillstone]

I'll keep my investment strategy as is for now though not out of knowledge of the market.  The Brexit may have implications we haven't fully thought about and moving on something right now or even in a month may be premature.  This thing could be great for the EU or terrible. It could improve the UK economy in the long run (short run its a loss) or it could drag it further down.  IT could even spell the end of the UK itself with Scotland breaking 2-1 to stay in the EU and N. Ireland not wanting to lose the open border with the Republic of Ireland. 

And then we have the uncertainty of our own election on top of it all. 

[Sibley]

Eh, I didn't realize their vote had happened, didn't know the result, and haven't looked at the markets. Low information diet is a wonderful thing.

I'll see it this weekend when I do my weekly banking, but not changing anything. Will just affect my net worth calc, which I don't always do anyway. Maybe I'll skip that.

[franklin w. dixon]

The thing I think is "funniest" is that Britain is gonna be punished financially for this right. So do people really think the voters are going to be like "oh really messed up on that one whoops lol." Or are they going to be angry at the hebraic financiers and their stooges. Hm Hm let me have a think.

EU has done precisely fuckall for working people in rich countries for 40 goddamn years and now the Lloyds Blankfein are like "Guhbwaa? Who could have predicted this??" and your Geerts Wilders and Maries le Pen are cackling and rubbing their hands and Merkel is talking about massive German rearmament and its like OK sure neoliberalism reaps the seeds it sowed but Christ don't any of these idiots see how shit got fucked in the first place. I mean Wilders and le Pen do but uhh they're not who I would prefer to see as beneficiaries of the garbage legacy of Reagan/Thatcher/Gorbachev/Deng Xiaoping. Oh well!!

[MOD NOTE:  Cut the racism.]

[franklin w. dixon]

I hope the Scots feel stupid though. Missed your chance huh buddies??

[franklin w. dixon]

There's this hilarious Romanian on an international forum who always posts racistly about the glory of Euro culture and keeping out the Musselmen and so forth and it's like "dude you realize English people don't even consider you white right? Right?" anyway I hope he feels stupid too.

[franklin w. dixon]

Tom "Mr. Moron Mustache" Friedman all penning missives that are like "on second thought maybe we shouldn't allow everyone to vote." Whoops looks like your international order was a house of cards you big idiot

[franklin w. dixon]

Everyone laughed when Armenia joined the eurasian economic union instead of the EU well who's laughing now. That's right. It's me, with profound bitterness.

[franklin w. dixon]

Imagine if this leads to Irish reunification, lmao

[GuitarStv]

The thing I think is "funniest" is that Britain is gonna be punished financially for this right. So do people really think the voters are going to be like "oh really messed up on that one whoops lol." Or are they going to be angry at the hebraic financiers and their stooges. Hm Hm let me have a think.

This may come as a shock to you, but not all financiers are Jews or the stooges of Jews.

[franklin w. dixon]

The thing I think is "funniest" is that Britain is gonna be punished financially for this right. So do people really think the voters are going to be like "oh really messed up on that one whoops lol." Or are they going to be angry at the hebraic financiers and their stooges. Hm Hm let me have a think.

This may come as a shock to you, but not all financiers are Jews or the stooges of Jews.

Tell it to the 17.5 million fascists who voted to leave EU

[NumberJohnny5]

Woohoo, stock crash...er...I mean, sale!

Now, could someone direct me to the clearance section? All I'm finding is full price VTSAX and VTIAX.

[brooklynguy]

The thing I think is "funniest" is that Britain is gonna be punished financially for this right. So do people really think the voters are going to be like "oh really messed up on that one whoops lol." Or are they going to be angry at the hebraic financiers and their stooges. Hm Hm let me have a think.

This may come as a shock to you, but not all financiers are Jews or the stooges of Jews.

Mr. Dixon didn't imply that they are.  His oeuvre of posts is a study in sardonic social commentary.  And he's on a roll today.

[GuitarStv]

The thing I think is "funniest" is that Britain is gonna be punished financially for this right. So do people really think the voters are going to be like "oh really messed up on that one whoops lol." Or are they going to be angry at the hebraic financiers and their stooges. Hm Hm let me have a think.

This may come as a shock to you, but not all financiers are Jews or the stooges of Jews.

Mr. Dixon didn't imply that they are.  His oeuvre of posts is a study in sardonic social commentary.  And he's on a roll today.

Ah.  My mistake, I misread it.

[onlykelsey]

Eh, I didn't realize their vote had happened, didn't know the result, and haven't looked at the markets. Low information diet is a wonderful thing.

I'll see it this weekend when I do my weekly banking, but not changing anything. Will just affect my net worth calc, which I don't always do anyway. Maybe I'll skip that.

Are you saying that my refreshing BBC obsessively and getting up at 4 AM to look at the results didn't actually change anything?!

[runningthroughFIRE]

The thing I think is "funniest" is that Britain is gonna be punished financially for this right. So do people really think the voters are going to be like "oh really messed up on that one whoops lol." Or are they going to be angry at the hebraic financiers and their stooges. Hm Hm let me have a think.

This may come as a shock to you, but not all financiers are Jews or the stooges of Jews.

But they're in finance, so what else would they be? /s

[tobitonic]

So am I just not informed about global events as I should be? Why didn't I see any reports regarding the UK's deliberations that lead to the vote? I presumed it was a surprise because it's being reported as a global shocker. The media's words, not mine. Although the time for making a move has passed, I wonder if I should have known this was upcoming.

Sadly, I have no spare cash to start buying today.

If you're an American, the answer is almost always yes.

[acroy]

Bought some goodies on sale this morning!

HSBC - biggest UK bank down 10%, 7.5% dividend, 0.75 p/b
DB - biggest German bank down 18%, incredible 0.3p/b!
SAN - biggest Spanish bank down 19%, 4.5% dividend, 0.7p/b
EWU - UK etf, down 12%, yielding 3.9%
GREK - Greece etf, down 18%. This is a speculative contrarian play... no one knows how much Greece is really worth.

Mr Market is yelling Sell Sell Sell. I will happily purchase some items on sale.

[NESailor]

Bought some goodies on sale this morning!

HSBC - biggest UK bank down 10%, 7.5% dividend, 0.75 p/b
DB - biggest German bank down 18%, incredible 0.3p/b!
SAN - biggest Spanish bank down 19%, 4.5% dividend, 0.7p/b
EWU - UK etf, down 12%, yielding 3.9%
GREK - Greece etf, down 18%. This is a speculative contrarian play... no one knows how much Greece is really worth.

Mr Market is yelling Sell Sell Sell. I will happily purchase some items on sale.

crazy numbers right?  So why isn't everyone doing this thereby erasing the big drops?  I looked at DB's balance sheet real quick and out of 1.77 TRILLION, 1.36 is in "long term investments".  What's that mean?  Could it be that when those are marked to market your 0.3 p/b will be a much larger number?

[Inaya]

Like the ignorant American I am, I didn't hear about this until last night. I'd like to buy some index funds on sale, but my liquidity is all in my 1% emergency savings account. It'll probably be Tuesday or later before the transfer to my investment account completes, and then an extra day to process the sale. Somebody please power up their crystal ball and let me know if it's worth it to transfer the cash (i.e., will the market get worse or recover?). I don't' think I would have done it for just 3% anyway to begin with.

[acroy]

Bought some goodies on sale this morning!

HSBC - biggest UK bank down 10%, 7.5% dividend, 0.75 p/b
DB - biggest German bank down 18%, incredible 0.3p/b!
SAN - biggest Spanish bank down 19%, 4.5% dividend, 0.7p/b
EWU - UK etf, down 12%, yielding 3.9%
GREK - Greece etf, down 18%. This is a speculative contrarian play... no one knows how much Greece is really worth.

Mr Market is yelling Sell Sell Sell. I will happily purchase some items on sale.

crazy numbers right?  So why isn't everyone doing this thereby erasing the big drops?  I looked at DB's balance sheet real quick and out of 1.77 TRILLION, 1.36 is in "long term investments".  What's that mean?  Could it be that when those are marked to market your 0.3 p/b will be a much larger number?

Who knows? I don't know. The sheeple are sell selling, and I ga-run-tee the smart money is shorting and buying. Brokerage houses make $$ every trade.

As far as banks go, DB in particular, these are some of the biggest banks in the world, and benefit from the fact that the central banks will bail them out if they get into too much trouble. What other business has that de-facto guarantee? Few or none. So with that balance sheet, and with that guarantee, looks like a good buy to me. Time will tell....