UK votes leave

What seemed to many as unthinkable has, become a reality. In a truly watershed moment, both politically and financially, the UK has chosen to leave the European Union after 43 years of membership. The decision by the UK electorate to begin proceedings to extricate the UK from the union will take up to two years and the outcome has predictably caused reverberations across global markets with the pound falling 10%, global volatility spiking and UK, european markets dropping sharply. This is largely down to the implied economic impact on both UK and global economic growth over the next 2 years and beyond as the UK removes itself from the eurozone. UK Gilts seen as a safe haven asset against the volatility in stock markets saw yields on the UK 10yr moving to historical lows below 1%. Whilst the outcome means choppy markets over the short term, we remain confident that there are still a wide range of opportunities for investors who are willing to keep a longer term investment outlook. As always we will continue to follow events closely.