BREXIT! Why Is This Not Bigger Than Greek Crisis?

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Unless you follow global current or financial events you would not know that on Thursday the British

will vote on whether to stay in the European Union and be part of the Euro-currency – and by extension

stay part of the fledgling European economic experiment.  This event has been dubbed the “Brexit”

vote, short for “British Exit”.

You may recall (whether you liked it are not) that the sky seemed to be falling according most media

a few years ago when Greece was defaulting on their debts and the rest of Europe was struggling to keep

them solvent and, more importantly, within the Union.  The Greeks were, and still are, threatening to

leave the European Union (Grexit) due to what they see as unreasonable loan terms and draconian budget cuts

imposed upon them by other European countries as conditions for bailing Greece out of debt.

So, why does the Brexit vote not seems as pressing and news-worthy as the Greek financial crisis?

Major analyst and money managers have been sounding alarms for some time now yet, in comparison to the Greek crisis, things seem quiet – until recently.  Why?

It could be because the European Central Banks were able to kick this proverbial can down the road long enough, coupled with the vast selection of eye-catching, global headlines, that the Brexit story was kept off the main-stream media roles to some extent.  Maybe it is because the global markets are in unprecedented territory that a ‘wait and see’ or ‘paralysis by analysis’ attitude has taken hold.

Saint-Laurent Associates does not profess to know the future.  We prepare our clients for likely events based on experience and data.  As many know, we have been advising about market corrections and volatility for various reasons, the European Union being just one of them.

The bottom line is that with polls and experts basically equally divided, and data being scarce on this type of experiment, we find it best to be heavily weighted in cash, liquid or mostly conservative strategies for the near term.  

If anyone needs clarification or help with this, or any life-decisions, contact us.

Richard St-Laurent

5 Star Professional Wealth Manager Award Winner