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The good news
Historically, these types of shocks rarely have long-lasting affects. Event-driven sell-offs in the financial markets are usually followed by huge rallies.
It's a similar story for economic growth, especially for regional shocks. Renaissance Macro's Neil Dutta considered other major regional shocks from recent history.
"Examples include the European Exchange Rate Mechanism crisis in the early 1990s, the Tequila crisis of the mid-1990s, and the Asian financial crisis in the late 1990s," Dutta observed. "We saw regional recessions that did not bleed to the rest of the world."
Dutta believes that the US economy could experience "a possible GDP hit of anywhere from 0.2 to 0.6ppt to US GDP over the next year" following this Brexit vote. But he also sees growth to improve thanks to, among other things, loose monetary policy.