PSEI.PH was up by 1 % during the initial counting of Brexit ballots on June 24, 2016 pacific time, then suddenly, it followed the paths of the rest of Asia dumping stocks to nowhere. Foreign traders started selling down and i have to sell all my stocks also since i am not familiar with this kind of situation. UK currency dropped it's value for the first time in three decades and upon checking the EU equity markets, the drop were worse than Asia except for Japan's index.
Black Swan Theory applies to this wherein a rare situation causes uncertainty or difficulty in predicting what comes next. Many expected a remain vote so everything was calm in the markets until the unexpected tally started to become clearer as the votes are being counted.
Everybody are now searching what is this event all about in the internet. Many are posting their sentiments on Twitter and Facebook and it's not clear now what would happen next week as everybody seems to be on alert and panicking.
Many things are for sure, friendship between these geographically separated UK and EU will be affected from new economic, immigration,employment, financial policies among others. UK might suffer the consequences in the long run since the European Union is their top market. With the drop in Pounds, it would encourage more exports but the problem is that EU members might prefer other Euro products. Good luck to the UK economy, hoping it could still be a United kingdom.
Companies around the world are starting to review the prospective impacts of this event. Though it may take sometime to process all necessary documents, those directly trading with the UK started to brew something that cannot yet be predicted.
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