May and June were a tale of two sentiments of market psychology. Before the Brexit vote on June 23rd, sentiment was pretty good...
Positive Consensus Observations
It seemed like stocks didn't even want to acknowledge the notion that it could down. It just didn't want to go there.
Here's the CNN Fear and Greed index on June 7th. It was flashing a level of Extreme Greed in the stock market.
Negative Consensus Observations
Yet despite this investors appeared to worried something was about to break and sought out their piggy banks....
...and sure enough we got Brexit. The vibes were not good as headlines showed.
That Fear and Greed index the day after? It looked like this
Looks like we should getting ready to ride the roller coaster. Strap yourselves in....
As long as it took me to write this blog, we saw a complete 180 turnaround shortly after the Brexit vote. It only took about 10 days for the markets to recover and make back all that was lost in the 2 days after the vote. A few soothing words from the Bank of England that they would print more money and even lower interest rates was enough of a sugar hit to get investors back in the market.