The Market Post BREXIT . . .

Well as I expected the market has returned to its normal level just under 18,000.  It seems to land in that area and dither for a while, roll back to 17,500 and start back up.  The market is antsy about the up coming election as usual and not picking a winner.  It is sort of standing on the sideline and watching what is going on.

Corporate earnings have not been sterling and growth is somewhere just below 2 per cent.  Anemic is probably the term to assign to the market now days.  BREXIT provided a weekend of excitement and as usual the market reevaluated the cause for turbulence and has now discounted it.  It really does not effect us in the US and Great Britain is and will remain a preferred ally.  So we will watch in askance and continue to do business with them.  Personally, I think it is a good thing that the British pulled out of the EU.  They had steadfastly retained their currency while all the other members went to the Euro.  They took hit going it alone but that will smooth out in time.

I made one buy, held the issue of a couple of days and then sold it.  I make just under $200 on the deal going in and getting out.  Since the buy was in my IRA, it is of no consequence Capital Gains wise, it is just a blip of a piece of income.

All my other positions returned to their normal levels, some even went up.  And since it was the end of the quarter a bunch of dividends came in too.  Some of the defensive issues I was in  actually went up during the fiasco.  At the bottom of the sell off, I was down about 1% vice the normal reported 2.5% over all.  Now that 2.5% has recovered and the whole thing earned us a couple of hundred dollars.  So thanks Great Britain.

And the beat goes on.  I still remain on the side lines generally in my IRA.  I have been holding a cash position for several months anticipating a severe market correction.  I thought that BREXIT would trigger the correction but it did not.  The regular brokerage account remains fairly static.

So the market is in a sort of status quo, looking over the election and bouncing around a bit.  BREIXT just provide a short buy zone and I took advantage of it.  It was a no brainer.