It’s been more than three years since UK citizens voted to leave the European Union. And politicians across the pond have been debating, resigning, and campaigning ever since. Meaning you’ve probably heard about a million Brexit updates so far.
The latest: the House of Commons said ‘hear, hear’ to ending Britain’s 46-year marriage with the EU. But it isn’t a walk in Hyde Park from here on out. Now, British PM Boris Johnson and friends get to work out the details. Here’s what this dramatic and drawn-out divorce could mean for your wallet.
You might spend less on vacation. The pound’s gotten pounded (sorry) from all the Brexit drama. Even after recent rallies, it’s about 10% lower than it was before that fateful vote in June 2016. That’s actually good news if you’ve got a trip to the UK coming up. A stronger US dollar means your money will go further. 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 can cause sales to drop. 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.
Stock prices might be a little shaky. As soon as Brexit became a thing, global markets freaked out. Then they calmed down. As a general rule, the stock market hates uncertainty. And a lot of Brexit’s economic impacts are still uncertain. But quick PSA: stock prices jump around all the time. Not getting 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. But Johnson promises to have updates soon. In the meantime, try to block out the noise if negotiations rock stock prices. And maybe book that vacation you’ve been thinking about to see Big Ben.