Posted By 
North American investors woke Friday morning to the shocking news that Brexit is a reality: the United Kingdom has voted to leave the European Union.
Stocks around the world are plunging while the price of gold is soaring.
As I write this just before 5 am, European stocks were down 8%, while gold was soaring almost 15%: the most in 42 years for British buyers.
One British friend, a banker, told me on Facebook that “it’s a very sad day for our country and Europe as a whole.”
Investors caught flatfooted
Were investors caught flatfooted?
“Absolutely,” she told me.
So what now? With 52% voting to leave and 48% to stay, the BBC says the report was decisive.
Here is the Economist’s report around 5 am: in an unprecedented move, the British weekly newspaper delayed publication of the print edition in order to get the historic vote in. They called it a “seismic shock.” It said this:
As soon as the results started to come in, the pound started to plunge. From around $1.50 before the polls closed, the pound dropped to $1.45, then $1.40, and then to $1.34, its lowest level since 1985. It was the worst day for sterling since the currency floated in the early 1970s. The shock was also reflected in equity markets, both within and outside Britain. The Nikkei 225 average in Tokyo has dropped 8%.
Pound suffers biggest hit since 1985
