Brexit may have taken place a few weeks ago, however, the ripple effects and speculation about the future are still daily topics for many in the financial sector.
Thankfully, many experts do not see Brexit as having a drastic impact on the United States.
Marian L. Tupy, senior policy analyst at the Center for Global Liberty and Prosperity at the Cato Institute, said in an interview that he believes the exit would have moderate effects.
“I think it would be highly limited, I mean the United States (has) global trade relations, not just with the European Union,” he said. “The United States would presumably, very shortly, after Brexit, conclude every trade agreement with Great Britain and will continue to have ordinary relations with the European Union as before.”
What could Brexit mean for the United States and possibly the Lehigh Valley? Here are a few possible scenarios.
1. Brexit could lower the cost of goods coming in from the EU and the UK, specifically. This also means that it’s a good time to travel as the dollar would have some strength against the Euro.
2. Since there is a level of uncertainty, and will be for at least the foreseeable future, interest rates in the United States are likely to stay lower for a period of time.
3. Brexit should not cause huge changes in the United States markets. In fact, it may provide more buying opportunities for investors in U.S. and foreign markets.
4. Upheaval and uncertainty oversees may encourage young and bright foreign students to remain in the United States following graduation. This type of “non-exit” could lead to an uptick in the national and Lehigh Valley economy.
5. Brexit is truly an unprecedented political event and it may cause politicians throughout the United States to take steps to make sure that they are working in conjunction with what their constituency, and the public at large, is actually in favor of.
Please keep in mind that these five items are based on an amount speculation and in no way reflect any sort of clear and concise prediction of what the financial future holds.
For more information, or to speak with a financial advisor, please visit www.mcleansteelvalley.com