RBC: Brexit Could "Spook" Ruling Class To Use Fiscal Stimulus

Will Brexit populism induce political leaders to use fiscal stimulus? With the US dollar and “safe haven” currencies retracing this morning, is a “fear bottom” in on the markets? Much of the various paths forward depend on how negotiations for the UK to leave the European Union proceed. In this regard, RBC Capital’s Charlie McElligott puts forth probability path analysis that sees additional fear. Considering today’s market bounce, he “smells” short covering but sees something bigger. Will the populist Brexit revolt “spook” the ruling class to engage in fiscal stimulus that more evenly benefits society? There could be both positive and…