“Uncertainty” – The Market Hates This Word
After Britain’s vote to leave the European Union on June 24th, opinions about the future ranged from this being as significant as the 2008 financial crisis to nothing is going to happen for the next two years.
We’ll concede that it was a significant event, but having observed how Europe has handled several crises in the last few years, we tend to agree with Ned David Research that summarized it by saying,
“Brexit will be dealt with in typical European fashion: with a compromise that changes nothing,
satisfies no one and kicks the can down the road.”
That said, the event has called into question a number of factors that are influencing the market from Central Bank policy to economic growth. So it’s probably worth spending a little time sorting out what is fact and what we can and what we cannot expect going forward.