As the day goes on, I hope to publish some more posts specifically in response to the day’s trading events triggered by the British vote in favor of Brexit.
But I’d like to offer you two thoughts before you participate in any activity related to a British stock selloff:
First of all, the British stocks that fell over 20% immediately upon the Brexit news are unusually low-quality names for large caps. Things like Barclays bank? Yes, the fall from $11 to $8 is interesting, but the bank’s internal controls and stability of deposit base are unimpressive. Remember this: Barclays also traded at $8 in 1996.