ApplePieOfDestiny wrote:
I think the reality is that for now, and for some period down the line, fundamentals remain the same, but there is downside risk to uncertainty.
Indeed. This isn't the market reacting to Brexit, because we don't know what Brexit will look like, and the fundamentals won't change for two years.
But there are things that'll suck in the short term: the uncertainty is enough to sink or indefinitely delay some plans (Siemens are pausing a windfarm they were building, and Virgin announced the cancellation of a project worth 3000 jobs.) Very risk-averse business like tech startups may prefer to aggressively avoid the UK. Due to the banks only being able to trade in Euros due to some special deal that we're unlikely to keep [1], and banks being risk-averse and slow to move, I think we'll see at least some finance jobs start to move. And the housing market is clearly at risk, as it's the classic fatal combination of very illiquid and unarguably in a bubble (at least in many parts of the UK.) That's why the overall FTSE100 isn't doing too badly, but some segments within it -- house builders, estate agents, UK banks -- are getting hammered.
[1] I only realised this recently. I think it's going to be quite important.