The people of Great Britain decided to shoot themselves in the foot and punch the rest of us in the face by leaving the European Union (Leave: 51.9%, or 17,410,742 votes, versus Remain: 48.1%, or 16,141,241). As a result, the pound fell to its lowest levels in 31 years and global markets are down anywhere between 3% – 11% on the first day of trading after the vote.
This “black swan” event is another reminder why I prefer real estate over stocks. In real estate, there aren’t so many random exogenous variables that pound your investment to bits. Rental income is sticky and there are things you can do to improve the value of your property.
Unless you are a multi-billionaire, being a minority investor with no say in your investment is just the way of life for equity investors. In this article, I’d like to discuss why Great Britain chose to exit the EU, and what may happen next.