Skip to comments.That post-Brexit freakout didnít take with the financial markets
Posted on 07/06/2016 10:03:58 AM PDT by Sean_Anthony
Calm returns, as it always does
The day after British voters decided to leave the European Union, we were barraged with media stories about how the sky was falling. And nowhere did they turn to support their case more so than the plunging financial markets.
The drop in the markets surprised no one. Markets have a natural inclination to like stability, and when theres a big change its common to see markets react negatively. Whats also common is that markets gather themselves quickly and make corrections in response to impulsive movements. So a big sell-off brought on by widespread panic on one day means the opportunity to buy low the next day. And people buy low. And markets rise again.
Today the markets resumed their downward slide with the DJIA still trying to break out. Gold is on a tear - $1365 now.
The financial writer has their head buried in the sand.
By my count so far there are five different UK real estate investment funds that have stopped redeeming shares since Brexit.
When you invest in these funds it is heads they win tails you lose.
There is some “investment advisor” on local radio pushing real estate investment funds without acknowledging that when things go bad they have no liquidity.
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