Market Review and Trends
Reflections on Brexit & The Presidential Elections
By The Asia Report  •  November 16, 2016
  I decide to take the events of the past two weeks to reflect about the mis-priced events and expectations. This year has seen two such situations present themselves – namely Brexit in the UK and the Presidential Election in the United States. Both situations had binary outcomes. Markets mis-priced the outcome wrongly in both instances, and reacted violently initially when it became apparent they had misjudged the situation. There are a couple of points I like to draw from these two events. Firstly, predicting the outcome of major events and taking huge directional bets on it is a very tough to get right consistently. One not only has to be right on the outcome, but also the reaction of the markets. I remember the night when it became apparent Trump was clearly winning. Futures in the US plunged precipitously and fell 5%. In Asia, markets were open and sold ......
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By The Asia Report
Richard is passionate about teaching the principles of value investing to people from all walks of life. Richard is also a frequent guest speaker on investing and financial markets at institutions such as University College London and the London School of Economics, and at investment conferences held in Singapore ...
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