Brexit is short for “Britain exit,” referring to the referendum that determined whether Britain would remain in the European Union or leave. It was put to a vote on June 23. Voters decided to leave the union.
Whether the outcome is good or bad is a matter of politics that I will leave to the individual to decide. However, there are some economic consequences that are less subjective, and we’re seeing them just hours after the voting results were made official.
At the opening of the stock market on June 24, the Dow Jones plummeted nearly 500 points almost immediately and closed on Friday down more than 600 points. Oil investors reacted in a similar fashion, with a $2 drop in both WTI and Brent oil futures early in the session.