“The Conference Board of Canada says that the country’s universities should “make a coordinated effort” to present themselves as a “compelling option” for leading UK scholars “as they seek alternatives to the instability facing them at home after the Brexit decision,” it reported.
Should UK academics be forced to follow funding elsewhere, it will be a blow to the country’s research output and first movers like Canada would likely profit.
This is just one example not only of the unintended consequences of Brexit but a glimpse into exactly how multifarious the sides to the Brexit coin actually are. And, while the moves of the first month were sharp and, arguably obvious, the ones that come next are likely to be mroe insidious and hard won – which makes positioning for them much more difficult.
It is a difficultly exacerbated by the moves already seen, particularly within safe haven assets.
While many investors predicted the performance of assets like gold and currency should a Brexit vote occur, a great deal fewer were actually positioned that way with any real sense of conviction and now, many are left wondering what to do next.
Gold, for example, moved sharply on the initial news and has done spectacularly well year to date, but some investors are now worried about how much more it can do from here.
As Lombard Odier investment strategist, Samy Chaar, says of the metal, while the firm upgraded its position on to neutral in May following its downward revision of the expected peak of the Fed rate tightening cycle, it no longer recommends adding to its position.
While current investor appetite remains strong, he says: “the downside risks seem larger than the upside potential”.
That is not to say the next month won’t bring with it opportunity, but it is unlikely to be as clearly marked as Brexit was and, if one is to take advantage of it when it does come, nimbleness will be required.
