The limitations of the immediate fallout from the “Leave” vote are already taking shape in some global equity and risk markets – less than a week after the historic referendum. Despite all the angst, table pounding and rabble-rousing that defined the days leading up to and immediately following the vote, global markets have already regained much of their recently lost ground.
The immediate fallout of the Brexit vote is now taking shape. From where I sit, several global themes are emerging that will define the landscape moving forward.
The world is not coming to end though new headwinds have clearly taken shape. Equity markets in Great Britain, Europe and the United States have managed to rebound handsomely over the past three days. In fact, US equity markets have staged their most dramatic two day rally since mid-February. Gold has lost some of its dramatic risk off glitter as the acute fear associated with the referendum has subsided.
My complete analysis of the market action and who is well positioned for this crisis is featured on the GMAG blog here