Buy U.K. stocks or wait? It is all down to Brexit and for a few days what will happen is anyone’s guess.

It would appear that May is starting to reveal her hand as a Remainer. Some will think she has messed up the Brexit deal so it is impossible for the U.K. to exit. So now the U.K. has to stay forever-bound to the EU.

Pretty much all Members of Parliament are Remainers so all they want is someone to blame for no-Brexit, rather than risk the chop from the voters in future elections. If they get their excuse, no-Brexit is assured. That position is close because a "no-deal-Brexit" equals "no-Brexit period" is close.

A revoking of article 50 now seems in the cards for this Friday, when the EU refuse to extend the article 50 period.

It is said that the EU can’t stop a revocation of article 50, so this is the only outcome not dictated by the EU; many members of which would quite like to be shot of the U.K.
U.K. legislators and their lackeys don’t want to leave, even if some European countries would be happy to see the back of the English. This is especially the case for France, which wants to bind the EU into a closer super-state-style agglomeration. You can’t really blame them for wanting the "U.S. of E," when "the United States of Europe" is such an obvious fate for its members. The British will drag the whole process down, as even the U.K. Remainers don’t want to go along that path even though staying will make them impotent. An inability to leave the EU, even after a plebiscite, in and of itself makes the U.K. political system powerless within the EU; what leverage will it ever have now without the practical sovereignty of being autonomous enough to leave?

So for the U.K. to stay in the EU, the EU needs only to not extend the deadline for Brexit, leaving the U.K. politicians with an excuse to revoke article 50. Obviously, U.K. politicians will point the blame anywhere but at themselves and they might even get away with it.

If instead the EU delays the article 50 period, it will give the EU a chance to further crucify the U.K. polity, destroy remaining shreds of U.K. sovereignty and if the U.K. does decide to bomb out, have a chance to make the U.K. actually leave on the worst possible terms to act as a deterrent for other countries who may one day think about leaving. It is a win-win for the EU.
The EU has got the outcome nailed on.

But for us, this week will decide if Brexit is a mirage or not. I revert to thinking as I did from moment one, that it is just such a fabrication. The whole sorry process is just a choreographed farce where representatives--all of which bar a few are Remainers--are simply trying to damage their political opponents, by sticking them with the blame for not honoring the Brexit referendum.

For Corbyn and his socialists they will give up their one chance in their lifetime of destroying the class enemy of the ruling "upper class" elite by gutting the cozy capitalist structures of the City of London. For the Tories no Brexit will mark the end of the United Kingdom as a country in any meaningful independent sense, consigning its status to that of a region of continental Europe ruled from Brussels rather than in the past history by Rome, Denmark, Normandy, Anjou, Scotland, Holland or Hanover.

It still remains possible for the U.K. to fall out of the EU on Friday, but parliament would revoke article 50 rather than have the U.K. fall out of the EU if it gets the chance. It will likely get that chance.

Cynics say that by the nature of politicians, the Brexit crisis will be extended by all means necessary as long as it possibly can. I see that point of view has merit. However, all parties want Brexit to be over and the U.K. political system and its elite want to stay in Europe and the possibility for revoking article 50 will come as a self-inflicted "fait accompli" that will end the saga.

What to do from an investment point of view?

If the UK is not out of the EU this week, it will never leave, which means the market will continue to rally. It will be safe to be vested.

If the U.K. is dumped out of Europe, as is still remotely possible, then after a few days of slump it will be time to buy into that dip. The market shouldn’t fall much because if markets have any ability to preempt the future then much of the bad news should already be in the price.

Unless something very strange happens, next week will give a high probability road ahead on how to invest in the U.K. stock market, be it a no-Brexit or hard-Brexit road.
Once the dust settles either way, the market is going up.

Source: Forbes