The Brexit Happened – A Behavioral Finance Analysis

Obviously the financial markets were caught by surprise on June 24th – the day after the UK-referendum on the membership in the EU. A day which has been proposed to be celebrated as the new independence day of Great Britain – which might actually become Small Britain if as a result of disappointment Scotland will leave the UK. In the morning of June 24th stock markets in Japan, Europe and the UK (measured in €) fell by 10% -which marks a three standard deviation event – an event that is almost impossible to happen. ….[READ]