Pre Ka;253796 wrote:what does one think will happen on the day the government just says that we will be rejoining the EU, will the pound fall or go up, will the stock market rise or fall,
I think both will shoot higher.
Look at what happened in 2016 after the referendum surprise
(Nice write-up at
https://www.theguardian....-plunge-on-brexit-panic
).
The pound went down... but after an initial panic the FTSE100 went back up... because about 75% of FTSE100 company revenues are from overseas, and became more valuable in GBP terms. Really sorted the men from the boys amongst active managers who was buying (canny) and who was selling (clueless) that day I think.
(The more domestic focussed - although still ~50% foreign revenue - FTSE250 didn't fare so well.)
I'd imagine that'd play out in reverse (not that I'm expecting it to happen any time soon). GBP up, but the pound strength would suppress market rises because the foreign revenues would become less valuable.