By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 21 2016
Key points
- The vote by Britain to leave the European Union poses risks for UK, European and global financial and economic stability that may linger for a while.
- However, it needs to be kept in perspective and is unlikely to plunge the global economy into recession.
- The Leave victory is unlikely to have a major direct impact on Australia but could have an indirect bearing via financial market volatility and confidence.
- The key for investors is to look for opportunities that Brexit driven volatility throws up.