Assets’ reaction to results of referendum after they were made public was as expected mostly negative.  We could see that all major stock indexes sharply fell and panic spread also among other assets, such as currencies.

But those who did not panic could see an opportunity in this chaos. Wasn’t that just emotional overreaction to the news? It reminds me a popular saying “buy low, sell high”. There aren’t many days when stocks fall that much, buying low was on that Friday pretty easy, you just had to be brave enough to go against the herd. Assuming you would buy low, would you also sell high since the Brexit?

We will take a look on performances of major European, American and Asian stock indexes. We will measure it since Friday (day after referendum, 24th of June) and Monday 27th of June until now, to calculate it we used close prices of mentioned assets.

Let’s begin with Europe’s stocks. In the table below are summarized returns of indexes based on when we would open position, either on 24th or 27th of June.



6/24/2016 – 8/4/2016

6/27/2016 – 8/4/2016


Euro Stoxx 50

5,63% 8,71%

FTSE 100






CAC 40 5,82%


Biggest profit would be reached by speculating on index FTSE 100. Investing in it on 27th of June and holding position until today would bring us great return of 12,67%. On the other hand, lowest, but still satisfying result would come from investing in Euro Stoxx 50 on 24th of June – 5,63%. We can see that higher returns would be gained if we waited until 27th of June when situation on markets was calmer, which is true for all mentioned indexes.

Now we will continue with Asian stock indexes, whose performances are again shown below.



6/24/2016 – 8/4/2016

6/27/2016 – 8/4/2016


Nikkei 225



Hang Seng



CSI 300 4,03%


Highest reachable return was 8,71%, resulting from speculating on Nikkei 225. Waiting until Monday would not pay off as much as in case of European stocks, because as we can see, out of these three indexes, only Hang Seng fell down also on 27th of June, resulting in higher return in second period (6/27/2016 – 8/4/2016).

Finally, we are getting to American stock indexes. Their performances are shown below in the table.



6/24/2016 – 8/4/2016

6/27/2016 – 8/4/2016


Dow Jones



S&P 500






Speculating on Nasdaq would be the second best speculation we could make if we had to choose between indexes listed above. Our return would be 12,45%, which is just 22 basis points less than investing in index FTSE 100. All three indexes declined also on Monday, meaning we could buy even cheaper than few days ago on Friday (24th of June), what would result in better returns, just like in case of European stocks.

When all what is publicly traded is falling, and people around are selling, we should calm down and realize that everything is getting cheaper, and it might be a good opportunity to open new positions. Because as we´ve just seen, in case of Brexit, it would definitely pay off to go against the herd and to do the opposite of what most people are doing.