Cramer On Brexit: Don't Chase British Stocks

Some analysts and experts were expecting British and European stocks to plunge as much as 25 percent if the British people voted to leave the European Union. In reality, the complete opposite happened which raises the question: Is buying British stocks a good idea now that the Brexit process is official?

According to CNBC's Jim Cramer, British stocks have been "among the hottest around the world" since the Brexit vote last summer. As such, it would be a mistake to chase British stocks even though it will be business as usual in the near-term.

"The UK has had a big run - maybe take profits there," Cramer suggested.

Foreign Banks Winners

Cramer acknowledged the EU cold be looking to set a harsh example of the United Kingdom and deter other countries from wanting to leave the union in the future. Cramer also doubts if there is any other city other than London in Europe that could become the "right place to do a lot of business."

Nevertheless, many banks will have no choice but to shift at least some workers outside of London and other key financial hubs. As such, Cramer suggested the Brexit process could help Spain's Banco Santander, S.A. (ADR) SAN and Deutsche Bank AG (USA) DB, among other Swiss banks.

On the other hand, Cramer finds it hard to imagine Lloyds Banking Group PLC (ADR) LYG, Royal Bank of Scotland Group PLC RBS and especially Barclays PLC (ADR) BCS will emerge as winners and could be losers.

See Also:

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