Question

What is the impact on Portfolio Equity Stocks and Portfolio Equity Flows after Brexit? (at least 150 words)

Answer 1

The exit of Great Britain from the European Union definitely did strike a major blow. How did this effect culminate would be discussed.

Britatin exiting the EU would have a chain effect on other countries in future. The EU's unity has already been endangered.

Portfolio Equity Stocks - The markets had already discounted a Brexit in Feb 2016 as all major indices, i.e. the FTSE 100, S&P 500, CNX Nifty etc. all major indices has a fall and correction in Feb 2016. This was because of the very same news of Britain leaving the EU. Also naturally portfolio Equity flows were hampered.

Companies which had huge exposure in terms of their operations in Britain had to suffer due the clouds of uncertaintly that loomed large. Corporations had begun to strategise about continuing operations in Britain and further repurcussions if any related to how they would deal with this scenario.

All major markets accross the world suffered losses and corrections happened, just that they were discounted. They very date of the vote 23rd June 2016 did not have much of an impact as everything was already factored in. This was on account of the rising voices and the certainty of Britain exiting the EU.