Market reaction to Britain’s referendum result has been harsh and totally unjustified.
Before New York had even opened for trading the Japanese market had already been pummeled, down more than 7% by the close. Likewise, European markets got hammered with the German and French indices down 6.8% and 8% respectively.
Why? Investors were nervous about the future of the European Union now that Britain has said it wants to leave the superstate.
Here’s the thing though. Most of the things that we worry about simply don’t happen. Put another way, the shark that we see isn’t the one we should worry about.
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Constable is an economics/financial markets commentator. Currently, he writes the monthly “In Translation” column for The Wall Street Journal, and a weekly investments column for U.S. News & World Report. He also contributes regularly to Barron’s, TheStreet, Fortune, Forbes.com and other publications.
Prior to becoming a full-time economics journalist/commentator Constable worked in a variety of strategy/advisor roles for major corporations.
His first book, The WSJ Guide to the 50 Economic Indicators that Really Matter, won an economics category award in the 2012 Small Business Book Awards at Small Business Trends. It has been translated into multiple languages. He authored the Rudolf Wolff mini-guides to the London Metal Exchange, and the Real Money Guide to Investing in Gold.