It’s been almost three years since UK citizens voted to break up with the European Union. UK politicians have been fighting over what to do next ever since. Meaning you’ve probably heard about a million Brexit updates so far. Here’s what this painfully drawn-out divorce between the UK and EU could mean for your wallet.
You might spend less on vacation. The pound’s gotten pounded (sorry) from all the Brexit drama. That’s actually good news if you’ve got a trip to the UK coming up. A stronger US dollar means your money goes further in the UK. Another round of tea on you.
US companies could take a financial hit. A weaker pound means US products are more expensive for consumers in the UK. Which could cause sales to go down. A lot of US businesses also use the UK as a token mutual friend for trade with the EU. Without that connection, global trade gets even more complicated. Not exactly what anyone needs right now.
Stock prices might be a little shaky. When UK citizens first voted to give Brexit a thumbs up in June 2016, global markets freaked out. Then they calmed down. As a general rule, the stock market hates uncertainty. Especially when the health of American businesses is at stake. PSA: Stock prices jump around all the time. Not letting that make you motion-sick is part of playing the investing game well. Over the long run, the US stock market has always trended up up and up.
theSkimm: Brexit news might make you feel like when that person you aren’t even dating tells you it’s over: pretty confused. All eyes are on UK politicians and what happens next. In the meantime, try to block out the noise if new developments rock stock prices. And maybe book that vacation you’ve been thinking about to see Big Ben.