The Brexit vote is “a wake-up call to anyone who is privileged”, according to a leading investor advisor who has dubbed it the start of a global anti-establishment movement.
Pippa Malmgren, former economic advisor to George W Bush said that the vote for Britain to leave the EU would be a good thing for the UK and UK property and added that the City of London has been suffering Stockholm syndrome in relation to the EU. “It has fallen in love with its captor.”
She said: “This is not just a UK issue. There are exit talks across Europe. Denmark, Sweden, Italy. So what have we actually left? Will there be anything to even exit before too long?
“And it goes further than that. It is global. The people across the world are saying ‘this is not working’.”
Malmgren said she has been pro Brexit for nearly two years and that Britain, and the British property sector, will emerge stronger from the result.
In a comment piece for Estates Gazette she said:
I have been pro-Brexit for 18 months or so and called for a landslide in the voting results. This is an anti-establishment vote and that’s why “The Establishment” doesn’t “get it”. It’s not restricted to Britain either.
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We’ll see more citizens in the EU pushing for a similar outcome. Look for Daxit (Danish exit), Nexit (Dutch exit), Swexit (Swedish exit), Italian exit (Itaxit), Grexit (Greek and or even German exit). We’ll soon find there isn’t that much left to exit from. The continental banks will have to be nationalised, ultimately.
All this is great for Europe, eventually. Anything that weakens the grip of the bureaucrats in Brussels lets oxygen flow to businesses.
The fall in Sterling will make British properties even more attractive. Far from weakening the economy, lower Sterling will boost British exports and British equities. Britain can mess this up by closing off immigration or by raising taxes, but there is no need for either.
Britain has long been a multicultural emigree hub and it’s already the lowest tax location for foreign capital in the industrialized world. Trade reverts to the WTO rules which govern the US -UK trade relationship, which works just fine. Nobody is allowed to retaliate under the WTO, so we need not worry about that.
The City will thrive as long as taxes and red tape go down, which they should do now that the UK escaped the yoke of the EU. For those who wanted to stay, I have one question: did you really want EU company, bankruptcy and employment law foisted on you?
That was already tabled and en route until today. Britain will emerge stronger from this. It’s a buy story over time. Oh, and the weaker pound plus looser monetary stance plus more exports will be inflationary. That means asset prices, like property, will go up. Rents will too.
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