Last Thursday, Great Britain voted to exit the European Union. Markets had been indicating that a remain vote was to be expected. Markets were wrong. This happens. But what happens next is not certain. Markets like certainty. They did not like the Brexit vote, and sold off heavily in its wake.
Here’s a link from ‘The Economist’ that provides a depth of commentary as to what will most likely happen next:
Here’s a link from Scott Grannis that provides a slightly different spin:
I have mixed thoughts about the Brexit vote and what will occur going forwards. I am concerned about the lack of clarity in terms on how the Brexit will actually be enacted, but I do not think that this is ‘the end of the world’.
Like every other crisis we have seen in capital markets, this too shall pass, and there will be many opportunities for patient investors. It will take a bit of time for volatility to subside, but we are carefully monitoring which asset classes and sectors might offer up the most compelling bargains.