by Tom Stevenson
On the day after the EU referendum the FTSE 250 index of domestically-focused mid-sized companies crashed 7pc. Investors’ panicky knee-jerk reaction reflected an intuitively obvious belief that the decision to leave the EU would hit home-grown businesses hardest of all.
When markets re-opened after a weekend’s shocked reflection on the immensity of the decision that had just been taken, the mid-cap benchmark fell another 7pc. In just two trading days, the index had crashed by 14pc.
In the market’s crosshairs were the sectors most exposed to a DIY recession – housebuilders, retailers, financial stocks. This week, just a month after the biggest political and economic shock in decades, the index recovered to its pre-Brexit level. It is as if the Leave vote never happened.