The UK 100 Index

The UK’s UK 100 Index fell 600pts in futures trading overnight, yet it retreated no further than Feb 2016 levels before retracing the down move to trade back above 6000! This is all contrary to the prevailing expectations and flies in the face of a negative campaign by Cameron and Osborne. Markets are down and yes, the Pound could fall further. The Index could do the same, but such significant retracements are certainly not indicative of a market in freefall today. Look out for a relief rally.

Set to benefit?

If markets continue to fall, we expect safe havens to receive a boost – obvious perhaps – and thus precious metals miners could make for some good plays on increased demand in that sphere. It’s time also to consider the big, boring non-cyclical stocks – such as Tobacco, Pharmaceuticals and Paper/packaging –  as stores of wealth and sources of income. Increased demand for these stocks could also make for some attractive share price gains, so there’s something for everyone.

Game over for the banks, house builders and airlines?

Note that, while Financials, Property and Travel stocks may well continue to suffer in the immediate aftermath of the vote, remember that we’re a long way off a done deal. Thus, as details of the negotiations on the UK’s exit from the EU emerge, as well as any new trade arrangements, markets will adjust accordingly. Who knows what could happen – some new deal to keep us IN the EU may even be struck. That’s why it’s really important for you as an investor to keep your ears to the ground. Or, you could let us do it for you by accessing our free, no nonsense daily research and market commentary here. In any case, read on for our top 6 Brexit stock picks.