Bye-Bye Britain

The Friday File: Shockingly, the UK voted to exit the EU. Sterling has touched levels last seen in 1985. Visit London!! Impacts here will be negative; GDP will be clipped by two-tenths of a percentage point through mid/late 2017, bond yields will fall, exports will suffer, and the Fed surely won’t raise rates before November! Europe must focus on avoiding a recession. This will take years to fully play out.