European banks after Breaks-it: brace for more

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In case you should wonder Brexit (or Breaks-it as has been hilariously re-dubbed) has ignited global markets with more volatility – nothing unexpected though much more than was anticipated in February. European banks (with peripheral ones more than others) have suffered (see chart below).

EU Banks

Market participants can be divided into two categories: speculators and investors. The first class enjoys the bumpy rides of volatility more whereas the second dislikes the drawdowns that come with it (see below).

EU Banks drawdowns

Breaks-it couldn’t appeal to everyone after all. Before the storm settles we should wait until the UK has settled again. Long wait, though.

 

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