Equity markets have cooled since the surprise Brexit decision was announced to the world. Ten trading days after the decision, the S&P 500 regained what it had lost in the selloff. Eleven trading days after Brexit, the S&P reached an all time high. The record came on the back of an outstanding jobs number along with easing concerns surrounding Brexit. It seems extraordinary that we can have market chaos one day and reach a new all time high in the following weeks. It is clear that the instability of the EU was weighing heavily on the market, but have we forgotten about it too soon? There are still many major elements of Brexit that have yet to be decided, especially the trade agreements. Realistically, the trade negotiations will have only three outcomes, resulting in two market reactions. Better or the Same Jump to the point in time when Britain’s trade agreements are all re-negotiated. Britain comes out with great new open trade deals with no penalties for leavin...
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