Economic uncertainty haunts the British markets in this post-brexit world. The days after the referendum results brought turmoil in global markets with around $3 trillion wiped out.
According to the Bloomberg Billionaires Index, 3.2% of their net-worth was lost. Europe’s wealthiest, Amancio Ortega, suffered a $6 billion loss, whilst other elite like Bill Gates and Amazon CEO Jeff Bezos lost $1 billion each. Ironically, not much had been taken away from the average working-class consumer.
There had been many forecasts for “Armageddon” post-brexit, but the reason why the turnout was not that drastic could actually be the British economy itself. In this case some investors feel this could be a good time for business investment, consumer confidence and economic growth.
Beneath all this “chaos” could there be a bright side to all of this. Usually, after certain fluctuations in the markets there tends to be a leading industry which will begin its own ‘boom’. In this case, the highly competitive industries would not want to waste time in the upcoming years whilst still in the EU. This has acted as a incentive for many investors to capture the market before their rivals get their heads together.
There are many industries in the UK which big businesses have not completely dominated, according to government studies. Around 99.9% of private owned businesses were SMEs, and its likely that they will not hesitate to prepare themselves for what is to come when Britain unshackles itself from the EU.
One thing that has to be excluded, is the Banking sector. The British banking system is a very concentrated industry and even though competition may help it, the European banks that are already struggling, it won’t be much of a blessing in disguise. After all, Nigel Farage said it himself that this vote was for the “little people” to stand up against “big business”, and clearly it is only big businesses that were taking immediate losses.