Post-Brexit Turmoil

Britain is in a tight fix now as it faces the uphill task of negotiating terms with the EU and trying to find a new normal. Britain wants to know what things with the EU will look like before beginning the official process of separation, however the EU wants the process of separation (invoking article 50 of the Lisbon Treaty ) to be kick started and official before it begins to even negotiate about how things will be like.

In addition, a record $3 trillion was wiped out of the global market in a span of 2 days because of Brexit. The panic caused by Brexit also saw investors fleeing to safe havens of government bonds and precious metals.

Two things seem to be for sure though. One, volatility is here to stay for a while. Two, the Fed is unlikely to raise interest rates in the near future.

 

 

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