Month: June 2016
Financial markets context
The volatility from #Brexit continues on financial markets. But it is worth placing that volatility in context.
This chart (source: Google Finance) shows the British pound against the US dollar over the last 6 months. The pound has dropped dramatically in the last few days. Although, the level it was at immediately prior to the Brexit vote was the highest it had been in the prior six months.
This next chart (source: News Limited) shows the UK equity index, the FTSE 100, again over the last six months.
Then the US equity index the S&P500 is in this chart (source: News Limited)
Volatile, yes. Markets always are.
Brexit – get on with it
With the British referendum on withdrawal from the European Union now complete and the issue has been settled in favour of leaving, it is vital that the Government moves quickly to avoid any perception of a political crisis. There could be continuing unpleasantness given that the whole debate became emotional and base. Prime Minister Cameron obviously had to resign. He has stated that his resignation will be effective no later than October 2016. I think he should go sooner. The same applies to the Chancellor of the Exchequer. It is not possible for either of them to continue in their current offices.
Australian Actuary 