So on Friday the markets took a big bath first thing.
The sole reason for this was that many large hedge funds had gone very long, on the back of their own polling, on Remain. They had bought Sterling and the FTSE250.
By the time the markets opened they had to cover their positions. If you were on the other side there was money to be made. Odey Asset Management apparently made £220 million on Friday...the parties on the other side are no being so vocal it seems.
Then to Monday, George Osborne made a good speech this morning to try and soothe the markets over. As it happens, they do not appear to need much soothing as yet. The FTSE is off less than 2% and the Pound down another 2% - all typical Monday morning moves. The FTSE100 has never recovered from last September's sell-off and remains range-bound ever since.
| The FTSE 250 has taken more of a kicking since Friday than the FTSE100 as it is more UK focused |
Of course, the Bank of England is in the background with its £250 billion liquidity offer that is helping to shore up the Banks.
In the real world, Banks shares have fallen and Property development companies, as well as UK focused retail businesses. This is as it should be, they are indeed the likely losers from Brexit. British Manufactures will in time be marked up as their products are more easily sold.
A fall in house prices and immigration is likely now with Brexit. Whether or not we go for EFTA (we should not, but we will is my current view) as the step back from the EU, some of the benefits of Brexit will be felt - as well as some of the downsides.
At the moment, such is the capture of the media bubble by London remainiacs that nothing will sate them and all is doom and gloom x10. It is for this reason I am surprisingly thinking we do need Boris as the next PM. Whatever his faults, he is great at optimism and for the next couple of years that will be very important for the UK.
I NOTE THE MARKETS ARE UP 2.2% TODAY AND THE POUND 1%. THE WAR IS NOT OVER BUT THE REMANIAC POSTURE THAT THIS WOULD LQAST FOREVER HAS DIED WITHIN £ WORKING DAYS. IT IN NOT OCTOBER 2008.
