Across the Pond

If you’ve turned on the news in the last month, you have heard the term “Brexit.” The portmanteau has been splashed all over international headlines since early June, when Britain prepared for a referendum on whether it would exit from the European Union (EU). When the U.K. shocked the world on June 23 by actually voting to leave, “Brexit” cemented its place as one of the most important words of the year.

 (Unsurprising) Panic

The impact of the U.K.’s decision to leave the EU was felt immediately by the global stock market. Analysts all over the world had believed the U.K. would remain and were pushing share prices higher in the hours before the vote. When the results were announced, the reaction was a rapid—but not catastrophic—downturn across nearly every stock exchange.

As it became clear that Brexit probably wouldn’t result in the end of the EU, panic dissipated and stocks returned to normal. For Americans, the disruption seemed to have passed; Brexit would be nothing more than a temporary political problem between distant countries. After all, didn’t we start a war 240 years ago so that British decisions wouldn’t affect us anymore?

Download Article to continue reading (PDF): Newsletter July 2016