U.K. Referendum: Brexit and the Divided Kingdom

Read the whole piece on Q Global Macro

• The Brexit referendum outcome changes the global investment outlook and despite the lack of historical precedent some scenarios can be explored by investors to navigate the short to medium term investment horizon; Longer term expectations will start to form once the outlook becomes clearer
• The U.K. could possibly face stagflation while the Euro Area would suffer downward pressures on both growth and prices
• Financial conditions will suffer from uncertainty, but G7 central banks have signaled their intentions to monitor and support the global financial system
• Not enough details are available on the economic, financial and political fronts for investors to assess a strategy that is outside the realm of safety; Crucial questions will need to be answered in the next few days, weeks and months

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