On Thursday, June 23rd the United Kingdom (U.K.) shocked the world voting to leave the European Union (EU) in a somewhat surprising move. The volatility we witnessed immediately after the vote reflected the fact that financial markets participants, who had largely factored in a “remain victory,” were caught leaning in the wrong direction. In a matter of 2 trading days the Dow Jones Industrial Average dropped nearly 1000 points, wiping out $3 trillion in world markets over its course.
As we noted to clients after the news, “this isn’t a Lehman-type event.” “It’s a response to a surprise, not an outright panic, and markets should settle down soon.” And by Wednesday of that week stock markets around the world continued to rebound as fear about the vote eased and investors wagered central banks would ultimately run to the rescue with more stimulus.
So where does that leave us today? Here are the numbers. On the June 23rd the Dow Jones closed at 18,011 assuming the “stay,” vote was in play. That evening news broke out that the Brits voted to leave the EU and the market hit a low 17,063 by the following Monday, June 27th. As I write this update on this week’s Wednesday we are now trading above 18,350 and on to higher highs! Is Dow 20,000 still too far in the distance?
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A taste of your own medicine
Don’t give them a taste of their own medicine. They already know what it tastes like. Give them a taste of your own medicine. If they lied, let your medicine be honesty. If they played with your emotions, let your medicine be maturity. If they broke you, let your medicine heal. If they made you cry, let your medicine make them smile. These remedies of yours may take years to work, but they work. And they last. So be patient. Stay true to yourself. And remember this: it is better for people to value you for who you are, not for who you pretend to be. Who you are lasts a lifetime. Who you pretend to be changes like the change of seasons. Don’t be afraid to be yourself from lives that you want to be in. You are, no doubt, worthy of being valued for who you are. So be who you are. -Naya Zebian
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The Dow Jones Industrial Average is an unmanaged index of 30 widely held securities.
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