According to the Washington Post, the exit of Britain from the European Union will have a direct impact on US mortgage rates, retirement plans, and vacations.
- What about buying a house? In the near future, interest rates will likely remain low as the Federal Reserve is already worried about recession. Brexit increases international recession concerns, and will help keep US mortgage rates low into 2017.
- What about your retirement? Half of all employed workers in the US have a retirement plan that has international funds but only small amounts are directly tied to British companies. However, volatility from British and EU funds will likely depress those share valuations in the short run. As the EU and Britain fumble through the breakup, it could take two years or more to work through the details and uncertainty will remain.
- What about your vacation? Uncertainty often causes turmoil but it also creates great bargains. International investors are RUNNING back to the US dollar, and that means our money has a lot higher value, at least right now. Look for bargains, particularly if the UK is already on your vacation itinerary.
Brexit will have more consequences AND opportunities, so look for further updates.
Corey Hansen is author of the 2016 edition of “Best Practices of High Performance Entrepreneurs” and a business acceleration expert. See Hot100business.com