Brexit is a huge negative outcome and has far reaching ramifications for global markets and economies. This vote was not just about Europe but also
about the voting public being unhappy with politicians in the UK. Globally, it’s been the central banks which have been dictating economic policy and these policies are still to reflect in the global economy picking up.
For the UK, the vote still has to be passed by Parliament and Article 50 invoked before negotiations start with Europe over an exit and could take up to two years. There will also be speculation over whether new general elections will take place.
For sure, there will be speculation over whether Scotland will call for a new referendum given they voted to “remain” in the European Union.
Elsewhere in Europe, other countries may well follow suit and hold their own referendums and concerns will rise as to whether the European Union will disintegrate. The global and market implications for this are very negative and volatility across all asset classes will be high for some time going forward.
Andrew Holland is CEO of Ambit Investment Advisors.
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