Ad hoc on Brexit vote

Today we give you an update on current market developments and our Brexit investment blog (http://www.innovatis-suisse.ch/investmentblog-on-upcoming-brexit-vote/)
British voters surprise global financial markets by a 52% majority voting for Brexit (UK leaving EU) vs. 48% for Bremain (UK staying in EU). While recent polls expected a very close finish financial markets increasingly had been expecting a Bremain vote in recent days. Thus we see sharp corrections today after US markets ended still very positive yesterday. This morning Japanese and European stocks lose 8-12% and the British Pound 6% vs. the Euro and 9% vs. US Dollar.

 

This vote is actually just a poll and the current British government promise to act accordingly. Now we are facing a quite lot of possible changes. On the short run UK government and EU authorities will start negotiation terms of exit and future cooperation. This will take at least 2 years. Until then formally nothing has changed yet. The UK will get a new government or even breakt apart if e.g. Scotland or Northern Ireland want to stay in EU. The EU will reorganize itself. Further exits might follow. A stronger and closer community could develop.

 

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