The decision by British voters to leave the European Union is a hard blow to the dreams of European federalists. It also announces heavy economic weather on any shore, and Canadian corporations are not safely harbored from that storm. Some will be particularly affected, for better or worse. However, Canada’s economy is still very dependent upon that of the U.S.A., and its ability to cope with Brexit’s fallouts will depend primarily on the reaction of its southern neighbor.
Many more developments must occur before one can properly understand and anticipate the actual effects of that stunning shake-up of the European Union. While we hold our breath, it is still interesting to highlight how much these effects will depend on the resistance of the American economy (see the chart below) and to try and anticipate which investments into the Canadian equity market should be most affected. This is the purpose of this article which I published on Seeking Alpha: https://t.co/QST5rdOx4A