In case you’ve haven’t been paying attention, everyone’s been talking about the “Brexit” the past couple of days. No, it’s not referring to some crusty European breakfast cereal, but rather the British exit from the European Union.
The British votes have been cast and tallied, but if you read closely, nothing’s meaningfully changed just yet. There’s a long, multi-year process ahead to unravel the relationship between the UK and the EU. So why all the uproar? Well, I think this CNN Money headline suffices to make the point: “Dow plunges over 600 points as U.K. ‘earthquake’ crushes global markets”.
Nothing stirs up panic in people more than the words “earthquake” and “global markets” in the same headline! Throw in some choice verbs like “plunges” and “crushes” along with some point drop on the Dow and you’ve got a real cocktail for paranoia. [Read more…]