Which stocks are most at risk if Britain vote out!

Ultimately, if Britain votes to stay in the EU, it will be Business As Usual for the economy and the Stock Markets, with a notable positive swing. The Brexit debate a very strong influencer in the last few months and has caused investors to be wary of investing – Hence the market having no trend the last few months. 

Below are my thoughts about what will be impacted and how!

If Britain do leave the EU, it will be the Small and Mid Sized Stocks will take the hit (under £100mil market cap), and the FTSE 100 companies will be less impacted.

Let me explain:

Smaller companies tend to be focused domestically rather than internationally due to the increased costs and complications associated with moving products/services abroad, it means when they do try move internationally, there will be increased costs and complications of this, ultimately putting them off doing so. This dilemma has caused (in most cases) a drop in the Stock Price of the majority this year as investors pull out of companies that will lack growth moving forward. 

It will also impact sectors.

Auto manufacturers, agricultural sectors, clothing and fashion sectors will be impacted as increases in taxes, levy’s and a decrease in EU funding will impact the bottom line and slash profit.

I know this is grim reading, but dont panic, there is always smart choices in austerity. Let me flip the coin:

  1. the small to medium cap companies have already decreased in value due to the air of uncertainty. Theres bargains out there. Some companies have a cheap price on the stock exchange, so find one you like (if you need help with where to look, click here on my previous post which will assist I hope) and watch it fluctuate during the weeks before, and pick it up at a steal. 
  2. On the plus side, FTSE 100 companies won’t be impacted as much as you think. Aim your search with them. Around 70% of the revenue for the FTSE 100 comes from overseas, so ultimately it is not a measure of the UK economy, its a measure of the global economy. 

I hope this has helped you understand your options with Brexit approaching fast


About andrepartridge

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3 Responses to Which stocks are most at risk if Britain vote out!

  1. cheekos says:

    Mr. Partridge, nine days after the Brexit Vote, British politicians playing musical chairs, and while stocks have bounced back, the Pound certainly hasn’t. That’s great for export, but bad for inflation.
    Between now and late 2018, when the “Divorce” will be finalized, the anxiety and uncertainty will hold center court, and post finalization…what happens to the U. K. Economy. Jobs, Trade, Foreign Investment. From this side of The Pond, I have been canvasing the British Take on the long-term aftermath.

    One cute explanation, which I have read, about why global stock markets missed diagnosing the Vote, was that they followed the bookies–The Money–rather than the polls. While the polls reflected mostly Leave, but by a point or two, the markets rallied. Strange!

    As it turned out, three-quarters of the money wagered was for Remain, so the markets were ebullient. There actually were more individual wagers on Leave, however the individual bets were in much smaller amounts.

    The moral was that the Big Money was placed by the wealthy, feeling comfortable with the status quo. But, the many small wagers reflected the one-Brit reflected the superiority of voters to wagers!


    • Apologies about the delay, thats a really interesting explanation. Although I would not like to exercise my opinion on the situation, the general consensus afterwards was that it was a mistake, and the class divide between people played a massive part. Like you have mentioned, the wealthy feeling comfortable with the status quo played the ‘common sense will prevail’ card and failed miserably.

      The concern is the dropping of flies from the leave party, and one famous actor quite comically said the head rat always leaves the sinking ship. Sums up the general feeling in the country at the moment. Nervous times ahead! I am very annoyed as I am heading across the pond this summer on holiday which has gotten a lot more expensive now!


  2. Pingback: Was I right about Brexit Stocks at risk? | Memoirs of an Investor

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