by Gary Tanashian
It’s a funny title for a segment, but it is appropriate. I don’t want to be too flippant with dismissals of inflammatory market events like ‘Brexit’ as simply hype. There is very real macro fundamental shifting going on behind the hype. But in market management, macro fundamentals play out over long stretches of time and nobody knows exactly how all the moving parts are going to affect the subject of the hype (in this case Britain and the EU), let alone the asset markets we are tasked to invest in, trade or avoid.
This is where market psychology comes into play, hence the ‘!!!’ title. As already noted, I get the feeling that the Brexit drama was an exclamation point on the global deflationary phase that has been in play since 2011, when the acute phase of the ‘Euro Crisis’ first erupted (sending gold to 1900+ an ounce).