Brexit: Five Key Points

The Brexit vote—the United Kingdom voters’ decision to exit the European Union—has unleashed political, economic, and financial uncertainty that will play out over the months ahead for affected currencies, equity, and fixed income markets, sectors, and individual firms. Immediately after the vote, market values for banks, insurance companies, and asset managers dropped from 5 to 30 percent, with UK firms understandably hit the most and those less reliant on UK-based revenue sources impacted the least. Moving forward with Brexit and the impact it is having in Europe and the global economy, there are five key points to note.