Monday, June 27, 2016

Brexit Links

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The market showed that it can get expectations wrong. Market was expecting U.K to vote in favour of staying - the market ripped higher the night before the vote - and to see a complete reversal, with FTSE getting slayed and SP500 also falling 3.5%. Whilst the single day market reaction was the worst in a long time, the key thing to watch is for whether the sentiment will continue in risk assets - a continued sell-off; and the obvious central bank response. Given central banks are already at negative rates in the euro; we might see a return of LTRO and potentially helicopter money. These actions are most likely to put a floor in the marekts again. If central banks step in heavily to stop systematic panic selling then it would be good to start setting up positions within the next few weeks.

Just What the Doctor Ordered

Immigration fears and the disintegration of EU following brexit

Forbes article about the sell-off after brexit being not out of the ordinary

Bank sell-off and CDS surges

Majorities in major EU countries want referendums

Why BP and Royal Dutch closed higher after brexit

Stocks are a Great Buying Opportunity

Brexit proves experts know nothing

Brexit will take two years

Brexit Charts

Expect more uncertainty