Amareos

Ryan Shea

Thematic (Sector/Industry)

United kingdom / Thematic (Sector/Industry)

For many, the undisputed winners of the Rio Olympic games were Team GB with the tally of 67 medals (including 27 Golds) constituting an impressive performance (Pride).While prowess in the sporting arena provides a nice feel-good jolt to inhabitants of this small island, the data we track at Amareos suggest that a more substantive and durable improvement in sentiment is occurring.The dramatic slump in crowd sentiment towards UK financial assets and growth perceptions following the Brexit vote (to levels indicating that the public initially viewed Brexit as on a par with the Great Recession) has begun to reverse. Further improvement is highly probable given official data are now also coming in better than expected corroborating a less pessimistic view.Many economists, especially those who predicted Brexit would be a highly disruptive economic event, argue that it is too soon to conclude that the impact of leaving is not be as bad as previously feared (Prejudice).We, by contrast, prefer to let the data speak. Given this, we expect the UK economy to fare better than most feared post-Brexit with a further reduction in crowd negativity providing a useful support to UK risk assets, particularly real estate where sentiment was most negatively impacted.

For many, the undisputed winners of the Rio Olympic games were Team GB with the tally of 67 medals (including 27 Golds) constituting an impressive performance (Pride).While prowess in the sporting arena provides a nice feel-good jolt to inhabitants of this small island, the data we track at Amareos suggest that a more substantive and durable improvement in sentiment is occurring.The dramatic slump in crowd sentiment towards UK financial assets and growth perceptions following the Brexit vote (to levels indicating that the public initially viewed Brexit as on a par with the Great Recession) has begun to reverse. Further improvement is highly probable given official data are now also coming in better than expected corroborating a less pessimistic view.Many economists, especially those who predicted Brexit would be a highly disruptive economic event, argue that it is too soon to conclude that the impact of leaving is not be as bad as previously feared (Prejudice).We, by contrast, prefer to let the data speak. Given this, we expect the UK economy to fare better than most feared post-Brexit with a further reduction in crowd negativity providing a useful support to UK risk assets, particularly real estate where sentiment was most negatively impacted.

Pride And Prejudice