When a Client Asks, “What is Brexit?” Here’s Your Quick Guide

As we discussed in a post on Market Psychology and the Investor Narrative, the markets get very volatile when a new, large and unfamiliar risk surfaces. Brexit, or the possibility that the UK will decide to exit the European Union, is one such risk. Will it happen? Right now opinion polls are roughly 50-50, and market participants are putting the probability at 40-50% of a yes/Brexit vote on the upcoming referendum on June 23, 2016. So, when a client calls and asks for an explanation, here’s your short primer: Basic points: The European Union consists of 28 member states. Member …

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