Previous Page  24 / 84 Next Page
Information
Show Menu
Previous Page 24 / 84 Next Page
Page Background

INTERNATIONAL AGENTS

SECTION

A

fter 43 years of inclusion, the U.K. has

voted to leave the European Union in the

historically unprecedented “Brexit” ref-

erendum vote. Aside from causing reac-

tive uncertainty in the world’s financial

markets (some would say “carnage”), and send-

ing jitters across the political landscape, the

result has longer-term implications for technol-

ogy and cloud-based companies, as Britain

undertakes the two-year process to extricate

itself from the EU.

The vote seemed to catch much of the world

by surprise and left many people wondering

whether they should act quickly to protect their

investments. U.S. trade with the 28-member

EU totaled $1.1 trillion last year – making it the

world’s largest bilateral commercial relationship.

Of that, 21 percent was with the U.K. alone, ac-

cording to U.S. Commerce Department data.

A Bullish Investment View

Joseph Mallen, chief investment officer for Sawtooth

Solutions, a technology-focused company that concentrates

on wealth-management platforms, said that puzzled American

investors and businesses should wait to see how this unfolds

over time, rather than taking drastic measures they

may later regret.

“I believe this is much ado about nothing

until further clarity on the result of the vote is

determined,” Mallen says. “This may take years

to sort out. The Brexit may not happen at all.”

In terms of the long-term investment outlook, the Brexit likely will

be a further catalyst for U.S. interest rates to remain low for the

next couple of years. “I don’t see the Federal Reserve raising rates,

as that would be highly unpopular given the prevailing market senti-

ment,” Mallen said. “Also, I believe U.S. treasuries will continue to

be a safe-haven asset for nervous international investors.”

Brexit: Wide-ranging

Consequences for

Tech and Cloud

By

Tara

Seals

24

CHANNEL

VISION

|

July - August 2016