Due to the volatility of almost all markets over the last few days, I want to share our thoughts on the British exit (or “Brexit”) from the European Union (EU). As is well known now, the result of the referendum last Thursday, June 23, was a slim victory in favor of Britain leaving the EU.
In the days preceding the vote, the S&P 500 and other equity markets rallied as Brexit fears faded. The unexpected referendum results paired with uncertainty as to how this resolves led to declines of over 5% for the S&P 500 in the last two trading days; most other equity markets have declined even further.
Touching on all the details and potential implications of Brexit would require an extremely long commentary and would quickly get into a lot of information most of you are probably not interested in. And as our aim is to relay information to clients quickly, I am summarizing what I believe to be some of the key points: