by Justin Spittler
The Brexit was only the beginning.
Four months ago, Great Britain voted to leave the European Union (EU). The decision caught investors by surprise and triggered one of history’s most violent selloffs.
It erased more than $3 trillion from the global stock market in just two days. And the pound sterling, Britain’s currency, plunged 8% in one day. The pound is now trading at its lowest against the U.S. dollar in three decades.
Investors sought cover in safe-haven assets. The price of gold surged 5% the day after the Brexit. Meanwhile, yields on many government bonds hit record lows. (A bond’s yield falls when its price rises.)