

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