The day after British voters decided to leave the European Union, we were barraged with media stories about how the sky was falling. And nowhere did they turn to support their case more so than the plunging financial markets.
The drop in the markets surprised no one. Markets have a natural inclination to like stability, and when there’s a big change it’s common to see markets react negatively. What’s also common is that markets gather themselves quickly and make corrections in response to impulsive movements. So a big sell-off brought on by widespread panic on one day means the opportunity to buy low the next day. And people buy low. And markets rise again.