Brexit

The outcome is shocking to many people, including me. I didn’t expect the majority to vote to leave.

Until now, I don’t have a good grasp of the overall impact to Britain, Europe and the rest of the World. This is very macroeconomic analysis and is certainly beyond my skill. I doubt if anyone has a good understanding of the overall impact either. The negotiation on the terms and subsequent changes will take months and years to implement.

The markets have certainly reacted strongly to the outcome. Several banks in Britain are down more than 20% in a day. Many companies saw more than 4% sell off in a day. This heightened volatility and uncertainty will take some time to fade. After that, something new and uncertain will crop up. This cycle always repeats.

My own portfolio was down around 2.5% on Friday, but I’m not worried. I hope the market falls further so that I can buy more of the stocks I like at cheaper prices. I am befriending this heightened volatility.

 

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