Brexit and the Stock Market
I am quoted in a Washington Post article on Brexit and a global markets retreat:
“There is still a negative reaction to the Brexit vote, which certainly surprised pundits, pollsters and the prediction markets,” said David I. Kass, a professor of finance at the University of Maryland. “Today, the markets are being more reflective that Brexit will have a negative impact on world markets, at least in the short run, especially in the U.K. and Europe.”
“Interest rates will stay low and stimulate the economy,” Kass said. “But by interest rates being constrained, large-bank profits are being held back. It reduces profit margins.”
