Unless you've been living in a cave for the past month or so, you will have heard about Brexit (British Exit).
For better or for worse, the UK has decided to forfeit its place in the EU in a bid to go it alone - and of course, it has stirred up more controversy than Boris Johnson's hair-do.
That's all happening across the pond so why should we care? Well, Brexit could have an impact on the US dollar - here's how...
Your European vacation could cost less
Experts believe that due to the fleeting, and currently unstable, value of the Great British Pound (GBP), the value of the US Dollar (USD) will strengthen.
Recently, the pound fell to a 31-year low against the US dollar in the wake of Brexit; this has had a knock-on effect to the euro too and has forced investors to pull their money from the UK and the EU, and place it into the US.
Samuel Rines, senior economist and portfolio strategist with Avalon Advisors says, "A stronger dollar makes it cheaper to travel abroad; US consumers can buy more in London for a dollar than before."
So, if you're planning a trip across the pond, now might be the time to go - a trip to the Houses of Parliament, the Eiffel Tower and the Vatican all in one go is now more feasible than ever - time to book those flights.
Mortgage rates could plummet
Generally speaking, mortgage rates follow the same pattern as U.S. Treasuries - so when Treasuries hit the floor, so do mortgage rates.
On the day the Brexit vote had spoken, the benchmark 30-year fixed rate mortgage rose to 3.73% from 3.69%, according to a recent bankers survey. When the chimes of the referendum verdict whistled through the wind, the average rate was closer to 3.6%. Around one year ago, it was 4.16%. Four weeks ago, the rate was 3.82%.
In short, as rates continue to sink, it should make it cheaper and easier for homebuyers to finance their home purchases.
Featured image VIA
Brexit could hurt the US economy
If you're standing at a busy subway station and someone has a cold, chances are you may get sick too.
It may be contrary to the message so far but it's worth mentioning none the less: the UK has (or at least, had) the world's fifth-largest economy and one of the United States' largest trading partners, so if it incurs too much financial damage, we could too.
We may be talking in the long-term, and it all depends on how the UK and the EU handle the Brexit decision going forward, but many big US companies trade with the UK as a gateway to Europe. If the UK's trade relationship with EU countries become tarnished, the US' could by proxy.
What does this mean? Possible economic instability and a recession. This may be a long shot and we don't have to lose any sleep right now, but as young entrepenuers and go-getters, it's certainly worth keeping an eye on.