Friday, July 1, 2016

Chicken Little: “The Sky Is NOT Falling.” “Say It Ain’t So Joe, Say It Ain’t So.”

Both the British and American Academic Political Media Industrial Complexes (APMICs) warned Britons that a vote to LEAVE (exit) the European Union would cause great financial losses.

Here are the numbers.  June 23 was the day of the referendum.  June 27, 2016, was the bottom of the decline.   July 1, 2016, is 8 days after the vote.

                              DJIA              S&P 500        FTSE 100        FTSE 250
June 23, 2016       18,011              2,113             6,338            16,271
June 27, 2016       17,140              2,001             5,982            14,968
July 1, 2016          17,949              2,103             6,578            16,465

The DJIA and S&P 500 have almost recovered to their pre-Brexit levels.  The FTSE 100 and FTSE 250 have surpassed theirs (although the decline in the value of the pound sterling against the US dollar offsets the nominal gains in the FTSE 100 and FTSE 250 when converted into dollars at the post-Brexit exchange rate).

The decline in the DJIA amounts to 0.34% and that of the S&P 500 0.49%.

Prices fluctuate.  Market indices will go up and down.  But the predicted crash did not occur.

The little boy in the crowd shouted out, “APMICs have no clothes.”

Do you suppose that prominent members of the British and America APMICs will issue a mea culpa?