Diamonds and Dogs
Brexit, not good for the banks. Huge uncertainty looms large over the banking sector following the UK's decision to leave the EU. Major European and US banks use the UK as a springboard for their services and operations across Europe. UK's exit from the Union will result in cross-border transaction hindrances and new regulations, which could hurt the current financial infrastructure. UK based, Barclays (BCS) was one of the hardest hit banks down 20% since they have the most exposure not only to the new pending regulations, but also the volatility in the sterling currency.
Brexit is good for gold. Not many stocks or sectors are trading higher, but gold and Newmont Mining (NEM) are performing well. Uncertainty has never been a friend of Wall Streets. UK and British exit from the European Union, which may take years to finalize, the stepping down of the Prime Minister, Dave Cameron has created a lot of uncertainty in the world. The SPDR Gold Trust ETF (GLD), jumped over 4.66% lifting gold miners like Newmont Mining up 5%.