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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Diamonds and Dogs

6/24/16

Brexit, not good for the banks. Huge uncertainty looms large over the banking sector following the UK's decision to leave the EU. Major European and US banks use the UK as a springboard for their services and operations across Europe. UK's exit from the Union will result in cross-border transaction hindrances and new regulations, which could hurt the current financial infrastructure. UK based, Barclays (BCS) was one of the hardest hit banks down 20% since they have the most exposure not only to the new pending regulations, but also the volatility in the sterling currency.

 

Brexit is good for gold. Not many stocks or sectors are trading higher, but gold and Newmont Mining (NEM) are performing well. Uncertainty has never been a friend of Wall Streets. UK and British exit from the European Union, which may take years to finalize, the stepping down of the Prime Minister, Dave Cameron has created a lot of uncertainty in the world. The SPDR Gold Trust ETF (GLD), jumped over 4.66% lifting gold miners like Newmont Mining up 5%.

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.