The Contrarian

“In the investment markets, what everyone knows is usually not worth knowing.”

Britain’s CEOs Intend to Leave

Bloomberg reports: Brexit Leads Three-Quarters of Britain’s CEOs to Consider Moving.

Given our view supported by experience over the past 40 years, CEO’s of large companies are worse than the “wrong way Corrigans” of the stock market. When do CEO’s do the biggest mergers? At market tops when they have to pay outrageous prices for their target. Years later, they do muli-billion dollar write-offs of their mergers. They are always most bullish at tops and bearish at bottoms. There is nothing that justifies their huge salaries.

Here is what the article wrote.

The U.K.’s vote to leave the European Union has left more than three-quarters of chief executive officers saying they would consider moving their headquarters or operations outside Britain, according to a survey of 100 business leaders by the accountancy firm KPMG.

Some 72 percent of the CEOs surveyed said they voted “Remain” in the June 23 Brexit referendum, KPMG said on Monday in an e-mailed statement. While 69 percent said they’re confident Britain’s economy will continue to grow over the next year, and 73 percent expressed confidence their companies will grow, 76 percent are mulling some form of relocation.

“CEOs are reacting to the prevailing uncertainty with contingency planning,” KPMG U.K. Chairman Simon Collins said in a statement. “Over half believe the U.K.’s ability to do business will be disrupted once we Brexit and therefore, for many CEOs, it is important that they plan different scenarios to hedge against future disruption.”

If Britain cuts corporate taxes further, it will become the center of commerce for the EU. That now depends on the politicians. Hopefully, they can put aside their tax hiking mentality and take advantage of a terrific opportunity. The EU is destined for chaos. They love high taxes, high expenditures, over 80,000 bureaucrats shoveling paper in Brussels and creating evermore regulations for businesses. It’s the path to destruction.

The CEO’s who are thinking about leaving Britain should leave. They will be replaced by younger, more imaginative individuals. We wish Prime Minister Theresa May great success.