Posted By RichC on June 24, 2016
Financial markets around the globe are reeling Friday morning from yesterday’s historic BREXIT vote in the UK as the people have chosen to exit the EU. Big picture is that life has not improved for citizens of Britain under the real or perceived central control — some suggesting it is "their" Independence Day. Even though most probably recognized there would be at minimum short term pain due to such a change and exit from the European Union, the status quo was not acceptable anymore either. The people have instead chosen to bear the cost of having their own "say" as to what happens with trade deals, environmental regulation and immigration were all in the minds of voters (Muslim refugee crisis and the terrorism threat was likely a scale tipper in the end). Like his brash arrogance, rhetoric, mindset, solutions or not, Donald Trump does have his finger on the pulse of ordinary people.
As the WSJ stories says Brexit Vote Wreaks Havoc in Markets: It was the surprise direction considering most expected that even with all the debate and frustration that both the poll and mindset was that the UK would stay the EU course and not head off in a new direction — the were wrong.
Britain’s surprise vote to leave the European Union battered the British pound by more than 11%, sent European and Japanese stocks on their steepest fall in years and broke records in government-bond yields as the world’s financial markets braced for an uncertain future for the politics and economies of Europe.
It was a historic drubbing for investors who had stacked up bets that the U.K. would choose to stay.