Great Britain voted Thursday to leave the European Union. Since then Prime Minister, David Cameron, who says he is resigning, stated he would not take the final step to enforce the vote. Cameron says that should be up to his successor.
In fact, Brexit or the actually departure of England from the EU may never happen. Or it may take many years. Here’s why.
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Referendum Not Binding
The referendum on which the vote to leave the EU is based, is not legally binding on the British government. It is therefore possible that parliament will simply refuse to enforce the results of the vote. Alternatively, parliament may entertain another vote enforce the results of that vote – if it is seen as more favorable.
Many, of course, see these kinds of moves as political suicide and suggest, instead that since there are any number of ways for England to depart the EU, the process of deciding which way is best could take many, many years.
Impact On Global Economy
According to The Wall Street Journal, the overall long term impact of Britain’s Brexit will depend on how the world responds politically – not economically.
Many see the vote as an indication that sovereignty and nationalism rival economics as drivers of voter sentiment. If that conclusion is reality, the world is in for a period of less openness, slower growth and less predictable policies among nations.
These realities could change global economics in a major way, forcing industrial players into complicated and costly trade agreements moving forward.
Brexit Could Make The EU Stronger
It sounds counter-intuitive, but many believe the sooner Great Britain finalizes its divorce from the European Union, the better. These analysts and observers believe the remaining 27 EU members could use Britain’s exit to shore up some of the many weaknesses existing in to the EU.
As one observer noted, now is the time for the EU to build a strong defense, rebuild its banking system and make the most of this opportunity to fix what’s wrong with the EU once and for all.
Best Post-Brexit Stock Buys
Meanwhile, now that Brexit has taken place, Jim Cramer’s TheStreet sees a buying opportunity for dispassionate investors.
TheStreet suggests the following as potential blood-bath buys: Walt Disney (NYSE:DISF) in the consumer discretionary space; Walgreens Boots Alliance (NASDAQ:WBAC) in consumer staples; Devon Energy (NYSE:DVNC) representing the energy sector; Wells Fargo (NYSE:WFCC) as a potential buy in financials; Johnson & Johnson (NYSE:JNJC) as a health care play; General Electric (NYSE:GEC) plucked from the industrials space; Apple (NASDAQ:AAPLB) as a technology play; Martin Marietta Materials (NYSE:MLMC) in the materials sector; Verizon (NYSE:VZC) in telecommunications; and Dominion (NYSE:DC) to represent utilities.