A week after the UK public surprised the world by voting for “Brexit”, the dust is starting to settle in the financial markets and the political arena. The sudden volatility global markets experienced in the days following the vote was in large part due to positioning, or rather, the lack of positioning. Going into the vote there was a strong consensus in the markets that, in the cold light of day, economic self-interest would prevail. The resulting vote to leave thus precipitated a typical market shock, with risk proxies like equities initially selling off heavily, while safe haven assets such as US and German government bonds rallying. As this initial shock has now started to fade, markets have begun to price in the actual economic consequences more appropriately.

Over the weekend I have received a number of questions about the potential implications from the UK voting to leave the EU on Friday. I thought my perspectives on this might be useful for many of you and I have provided below my responses to many of the questions that have come in. All of the views expressed here are my own personal views.