If anything definitive can be taken from Brexit, it’s that UK markets and the UK economy has been upended. A case in point is the performance of the benchmark FTSE-100. Leading up to the Brexit referendum on 6/23, whether you looked at returns in local currency or US dollars, the FTSE-100 was up marginally on the year with a gain of less than half of one percent. In the aftermath of the referendum, the FTSE-100 rallied in local currency terms as exporters with a large weighting in the index stood to benefit from the weak pound. In US dollar terms, however, stocks nosedived due to the collapse in the pound. Now, 13 days into the post-Brexit political and economic landscape, where do returns for the FTSE-100 stand? It depends on your perspective. In local currency terms, the FTSE-100 is up 6.5%, while in US dollar terms, it is down 6.5% You can’t get much more opposite than that!
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