By Dan Denning – Southbank Investment Daily (Great Britain) –
Hah! And you didn’t think Brexit was a tradable event!
After today, we’re all going to have to stop thinking of Brexit as a discrete political event that happened in June of 2016… and think of it as the beginning of an incredibly complex financial divorce and settlement between two major economies, affecting two major currencies, dozens of commodities, tens of thousands of companies, and hundreds of millions of people – including you: the reader and investor.
Yet with all the political uncertainty – elections, Trump, Brexit, fat Koreans lobbing missiles over Japan – did you know that the volatility index (Vix) had its lowest quarterly average in 11 years? That’s assuming it doesn’t spike massively today, the last day of the quarter. But there you go; markets are sanguine.
This was a point Charlie made to The Fleet Street Letter readers yesterday. Markets believe that the European Union and the United Kingdom will eventually settle on the least damaging trade relationship – because that’s what’s best for both. Here’s Charlie from yesterday’s update: