The global markets took the vote hard.

but our picks fell no more than US small caps ( RZV was down 4.25%)

NGE and EGPT fell the least at 0.7%, surprising.

the one day drop EWI, EWP, GREK were all over 15%, shocking.

the European crisis just deepened again. the hidebound eggheads in Brussels still not responding to popular discontent to create jobs.

Banking union is probably not gonna happen now, and most of the periphery will stagnate under endless bank tightness from fear of more stress tests and recapitalizations.

Unfortunately, the Euro-zone projects is now pretty much hopeless.

As I continue to read more articles on the aftermath of Brexit, I get the sense that the periphery countries will now definitely try their own referendum on “____exit”.

So while the Euro will remain strong, the stock indexes of Spain, Ireland, Italy, Greece, and Portugal will have long term discounts that could reluctantly close if German 10y bond yields rise above 3-5%.