He’s had to suspend parliament. He’s had to stand up to the huge bureaucratic EU. Then he’s had to fly back from New York when it was ruled his suspension of parliament was illegal. And he seems unrepentant.
But as we said months ago, this no-blink approach could yield results for BoJo (Boris Johnson). You only need to spend a few moments reading comments on The Sun — Britain’s largest paper — to see that people are fed up with Remainers manufacturing delays on the Brexit they voted for.
What will happen next?
BoJo is walking a lonely, narrow yet determined road with a minority government.
And it is yielding results despite what Carney, Corbyn and the naysayer British financial press warned. Things are on the up, even as a no-deal seems possible.
Yes, even if an EU deal doesn’t work out, the UK seems to have found some confidence to make its own way. And the pound and FTSE are voting their approval with measurable upswings in the last week. Especially against the anaemic New Zealand dollar.
How does New Zealand compare?
The comparison is stark. While BoJo has the support of much of the country — if not the politicised parliament —here in New Zealand, we are ruled by a Goldilocks government. One that was not the majority party but was cobbled together under the over-democracy of MMP.
It’s not so terrible if our economy is being managed effectively. Otherwise, it’s a travesty.
Here at Wealth Morning, we support what’s good for investors and wealth builders. And Brexit is shaping up well for investors who bought a beaten-down currency and stock market there. This is what we’ve also been recommending in our premium research service — Lifetime Wealth Investor.
For Britain, if saying ‘sayonara’ to the EU means a reconnection with the ‘Old Commonwealth’, this feels right.
Could we benefit?
Free movement of goods and potentially people (via visa-free arrangements) between New Zealand, Australia and the UK could provide much-needed trade and export growth. Especially for Australasia — a region that has become too export-dependent on the stumbling China juggernaut.
For example: under a free-trade arrangement with the UK, New Zealand could assist in replacing many EU imports that previously came in tariff-free. That duty on Kiwi wine exports could come off. And there are opportunities for increased export of dairy, horticulture and other products.
The more New Zealand can open up trade in areas of key competitive advantage, the better the economy will perform. And the heroes will be sector stocks in wine, dairy and food export.
I’m looking at Delegat’s Group [NZX:DGL], Synlait Milk [NZX:SML], and Sanford [NZX:SAN] as examples.
Let’s celebrate the makers, builders and those who free up commerce — rather than restrict it. They are the generators of wealth.
And the leaders are those like Boris, who take on the bureaucrats out for their own political ends. His weapon is something we can all celebrate: common sense.
Simon Angelo owns shares in Sanford [NZX:SAN] via Wealth Manager Vistafolio.