July 13, 2016, 5:07 pm

How You, Too, Can Capitalize Off Of Brexit

by: The Financial Blogger    Category: Investing Ideas
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How You, Too, Can Capitalize Off Of Brexit

Despite the fact that some time before the British referendum to leave the European Union, four out of five European hedge funds had bravely put their money on the UK remaining in the EU, a certain number of firms saw some pretty impressive returns after their betting against the grain of popular opinion of economic policy and the cash debate. According to Craig Weynand, the NuWave Matrix fund rose in profits by 12% on the day of the vote. Other hedge fund managers, like CIO Ryan Tolkin of Schonfeld Strategic Advisors among others, as well as legendary investors George Soros and Stanley Druckenmiller also made fantastic gains from the sudden market volatility. How did these people achieve such successful gains even if, in the case of the hedge fund managers, they did not place bets on the outcome? The answer is simpler than you might think…

karatbars.safety-for-our-kids

Understand The Risk

 

China is being crushed by their debt and poor economic policy, as is most of Asia. The Brexit decision is a testimony to the success (read: absolute failure) of the EU’s experiment in artificial currency, the Euro, which has been a central point in the cash debate. The whole world will feel the consequences of Brexit, consequences that will change depend on how prepared economically those countries are.

 

As an individual, you might be wondering what you can do to prepare for a volatile and risky market. A great place to start is to look to the greats; for instance, the aforementioned Soros and Druckenmiller. What did these incredibly wealthy and influential men do long before the Brexit decision was even brought to referendum?

 

Well, Druckenmiller just told the attendees of the Sohn Investment Conference in May to get out of stocks and get into buying gold. George Soros dialed back his US holdings and invested in the SPDR Trust. Really, investing in gold may be the best move in the wake of the British referendum. Every group or individual who made returns of any major kind after what Remain-ers claimed would be the fallout after the vote on the 24th of May has one thing in common: they all invested in, or already owned, precious metals.

 

A Safe Bet

 

Peter Donisanu compared the economic results of the referendum to Black Wednesday. Part of his comparison is correct: People have flocked to “safe haven” assets, such as government bonds, but even the prices of the precious metal have been predicted to begin to fall starting in August. A different safe option would be the cryptocurrency Bitcoin, which has many of the trademark qualities of a safe-haven investment.

 

Diversify, Diversify, Diversify

seiz

As in any great shift in economy, the safest move after the UK’s departure of the European Union is, as usual, to diversify your portfolio with a variety of safe investments. There has never been a better time to get a few more eggs in your basket, and your financial health will certainly be better for it.

By Harald Seiz, Multi-Business Entrepreneur & Expert on Gold

https://karatbars.com

 

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