Per predictions made in our last post, the initially high levels of market volatility the Brexit forced upon the UK economy have seen significant short term decreases. This is due to Investors calming considerably from the Brexit referendum of June 24th. This increase/decrease in volatility reflects strongly upon the highly elastic relationship between investor's market sentiment and the price level of the $VIX.
On 6/24 the S&P500 VIX saw a 49% Increase; only to lose more than they had gained over the course of the following week.
This suggests the Brexit was an economic non-factor to S&P 500 volatility overall, which is a preposterous notion, and the volatility index should still be near the mid $20's.
This is where I disagree. If share prices only reflect the direct (short-term) Brexit implications; than the June 24th global correction may have been an overreaction. However, the long term implications on global trade are not only complex and difficult to predict, but largely unaccounted for by the global economy.
Is not responsible for your investments.