In this piece, CIO Jonathan Lewis discusses the economic response to Britain’s decision to leave the European Union.
- Although risk indicators rose following the Brexit vote, they did not rise to levels with either crisis or more sustained market correction.
- If volatility markers remain stable or begin to fall, we will increasingly expect stable macroeconomic indicators to continue.
- Given the likelihood that the British pound will fade ever more rapidly as a world reserve currency, we expect other strong balance sheet, free market nations to be big beneficiaries of global reserve currency diversification.
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