Brexit becomes reality--6/24/2016
Last night, the citizens of Britain voted to leave the European Union. In all honesty, I do not think this decision was made due to financial implications. Rather, I think it was for political reasons.
In fact, I think it touches a very similar nerve that was touched in Austria which drove me to mention on 4/25/2016 that the Austrian Freedom Party was making noise in that country's Presidential election. Furthermore, I think it is the same vibe that is fueling the rise of Donald Trump in the United States. And I think those feelings and emotions are focused on national sovereignty and the will of the People versus the bullying of the masses by the bureaucrats.
As an observation, Dow Futures were down over 700 points as I watched the vote tallying live on television last night. As I type this now, the Dow is down 300 and some change. Could it be that the defensive nature of portfolio manager's and investor's allocations didn't dictate the need to panic sell with this news? And in fact, could it have allowed them to buy and still remain defensively allocated? Time will tell on that one.