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What investors will do if a Brexit looks likely

QuantiFire was recently engaged by the UK Investor Relations Society, to research the views of fund managers and buy side analysts regarding the impact that Brexit might have on investment markets.

It has been an interesting project to work on and with 407 responses it is a ringing endorsement of QuantiFire’s ability to obtain perception research from busy investors.

The results are resoundingly clear: if a Brexit looks likely over the coming weeks, we’re going to see a majority of investors wanting to take risk off the table. Consequently we can expect downward pressure on the value of sterling, as well as equities and debt securities in both UK and European markets.

If there is one thing that capital markets don’t like it is uncertainty and a Brexit would certainly come with a dose of that. However, at the same time few things are as volatile as capital markets and we should probably be thinking past what might happen to asset prices in the near term when we come to vote.

Nevertheless, if you have an interest in near term price movements, keep an eye on those polls!

You can access the press release here. The full results will be published on the IR Society’s website shortly.

Charles Hamlyn is Managing Director of QuantiFire a specialist provider of capital markets perception research and associated investor relations services.

Published: 20 May, 2016