Brexit Update

Shortly after I wrote today’s newsletter, much of it became obsolete. As I wrote the newsletter, the outcome of the Brexit was in doubt. Now we know that Leave has won the day.

This was unexpected and the results have been very dramatic. The British pound plunged as low as $1.33. That’s a 31-year low. Hours before, it had been near $1.50.

The U.S. dollar has soared and the 10-year Treasury yield dropped to 1.52%. That’s the lowest in four years.

It looks like the 54-day streak of not dropping by 1% is over. The S&P 500 has been down as much as 2.82% today.

The financials are down the most, and many of the major Wall Street firms are the biggest losers in the S&P 100.

Posted by Eddy Elfenbein on June 24th, 2016 at 10:04 am

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