What will a Hard Brexit do to the british economy, and how will it affect stock prices? why is it so bad? - Seedly
 

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Asked by Anonymous

Asked on 05 Mar 2019

What will a Hard Brexit do to the british economy, and how will it affect stock prices? why is it so bad?

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Alvin Teo
Alvin Teo
Top Contributor

Top Contributor (Oct)

Level 6. Master
Answered 3w ago

The keyword is uncertainty, however, the question to ask yourself is are you going to be affected?

If the stock you buy is purely operating in Singapore, it may be affected for a while but its fundamentals will pull it through.

The financial markets have endured many crises and Brexit will be just another. It should pull through.

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Running a business involves a temporal aspect of putting in funds and time/effort now for return in future.

Some really high return projects require planning out far in the future (eg. lifetime of a nuclear power plant may be more than 20 years). Brexit creates a lot of uncertainty about what will happen next - the laws of today may not apply after Brexit.

That uncertainty is very very very bad for business and so dampening economic activity.

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