Some Thoughts On Brexit
Clearly the UK’s decision to leave the EU is a big deal. The implications for the UK and Europe are large. And there is a feeling that similar politics will be adopted in other parts of the world. All of that is concerning. But my immediate reaction to the news when I woke to it on Friday morning was this:
It is important on days like today to remember that change creates opportunity and opportunity can create wealth if approached correctly
— Fred Wilson (@fredwilson) June 24, 2016
I got some flack for being so “opportunist” and “financially minded” on a day when many people were dealing with the the reality that their world was going to change and maybe not for the better.
I realize that things like this are not all about money and financial opportunity. I realize that there will be a lot of pain for some in this transition.
But I am all for change. A static world is not a good world. And, as I said, with change comes opportunity.
Is it possible that the British Pound will be trading higher against the dollar and euro in a few years than it was before the vote? Absolutely. Is it possible that US stocks will recover from the losses they took on Friday and continue the eight year run they have been on? Absolutely. Is it possible that all the hand wringing over the potential for a global economic slowdown brought on by Brexit is overdone? Absolutely.
I am not saying all of these things will happen. But they could.
But more than that, going into a foxhole right now seems like the wrong idea. Some of the best companies have been created in times of great economic turmoil. And, because of that, some of the best venture capital investments have been made in times when everyone was risk averse. I am not for getting too excited when times are good and I am not for getting too conservative when times feel bad. I am all for looking for opportunity at every turn.