London calling . . After Brexit where are we heading. .

 

“Keep a stiff upper lip” is a phrase often used by Brits to express fortitude and stoicism during times of distress.. 


 

Britain’s vote to leave the European Union almost a quarter century after its creation with the Maastricht Treaty left global markets in disarray Friday. Today, investors start to figure out the way forward. Generally, we have no experience in what will happen next.. While investors were caught off guard by the vote, several themes emerged from the frantic trading and onslaught of research reports. This market map for the coming months may or may not lead to treasure but almost certainly involves Treasuries. 

     Name                                                      Last trade                                   Change  

     Gold Futures                                   $ 1,330.00                10.00(0.76%)

     Silver Futures                                $ 17.78                        0.00(0.03%)

     Palladium Futures                       $  550.95                     17.30(3.04%)

     Copper                                             $ 2.12                           0.00(0.17%)


 Market data: Nasdaq.com 

 Logically after the first earthquake, there are going to occur some aftershocks and stress as well in the global markets, visualizing the stock markets , liquidity market and as well corporate bond’s. Considering that Brexit referendum erased almost 3 trillion of equity of the global market’s. . In an environment of weak corporate earnings growth and lofty valuations, U.S. financial markets are already primed to overreact to external developments, this is a big external development, and U.S. financial markets—even though not directly exposed to a redefinition of Europe—are likely to experience heightened price volatility for some time to come.

 

Credit Suisse economists  said in a note:

“Our view is that the expected panic in credit markets will only last a day or two, and will provide an opportunity to buy at better levels. By buying European corporate debt due to potential and existing support from the European Central bank. “We expect a strong response from the ECB”.

 

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However, markets will be down sharply over the next few days. The fundamentals have not changed, and markets will recover, the U.S. economy will continue growing slowly. Brexit will not have a meaningful impact on us or push us into recession. One thing we can be certain about, and that is volatility.. If nothing else, Friday’s global bloodbath is likely to push central banks to maintain accommodative policies to boost liquidity. More important, it will dissuade the Federal Reserve from tightening monetary policy until the markets have regained their equilibrium. Investors will need to be patient as [Brexit] winds through the markets—it’s going to take time . . who knows how much, but there is only one-way to find out . . 

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S&P 500 SPX,-3.59%  falling 75.91 points, or (-3.6%), 

Dow Jones Industrial Average DJIA,-3.36%  slumped 611.21 points, or (-3.4%)

The Nasdaq Composite Index COMP, – 4.12% plummeted 202.06 points, or (-4.1%)


 

J.Mason ♦

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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