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By Luca Paolini, Chief strategist, Pictet Asset Management
The British electorate’s decision to leave the European Union in the June referendum has roiled markets worldwide. It has clouded prospects for the UK and world economies, and threatens the future of the European project. Investors are obviously right to feel concerned. But they should also know that there are some silver linings to the Brexit clouds. And these could support riskier asset classes over the medium term.
The biggest worry is that the UK’s looming divorce from the EU will encourage other electorates in Europe to demand their own ‘leave or remain’ referenda. After all, populist, anti-EU movements are gaining strength in France, Italy, Sweden and even Germany. Yet there are...
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