News this past week
- UK votes to leave the European Union; sterling depreciates
- Political backlash from referendum result
- Pessimism in global equity markets following UK vote
- Fresh record lows for government bond yields
- Flight to safe-haven assets sees gold rally
James Klempster, CFA of Momentum Global Investment Management shares his view:
Today, the UK (and Europe) can be forgiven a brief period of soul searching, but protracted self-pity is not in anyone’s interest. Ultimately the public have spoken and regardless of one’s view of the result it is incumbent upon everyone in Europe – businesses, politicians and consumers alike – to do their utmost to make the best of it. Business’ natural inclination is to do just that – management is paid by shareholders to make money in all environments – but while there is such great uncertainty over the region it is understandable that businesses may sit on their hands. Doing so raises the spectre of a recession both in the UK and on the continent and as a result we would do well to see the politics settled as soon as possible.