British voters today surprised the world with their decision to change how they cooperate and share resources with their neighbors in the European Union.
While market reaction is eye-popping, it is likely that Britain will continue to coordinate its sourcing and using of resources with countries across the channel. It is also probable that future British trade and regulation will be conducted under a familiar philosophical framework.
To quote Walter Bagehot: “One of the greatest pains to human nature is the pain of a new idea.” Today we see that this can be true even when the new idea – that of a Britain independent of its neighbors in the European Union – is quite an old one.
While many say that change is the only constant, we believe human adaptation to change is a remarkably consistent phenomenon. We see that repeatedly in the financial markets. Market calm will return.