Final Word from Monday, June 27, 2016

A survey by the Czech finance ministry found that 42% of respondents were unable to calculate 2% of Kč 100. If Czechs had been asked to explain how it's possible to make money if prices fall, their financial literacy would have no doubt been even weaker. Short selling and derivatives remain the domain of finance specialists. Analysts Pavel Kohout and Ondřej Jonáš reinforced this reality by telling the Czech media that the markets like stability. They of course know that market players love volatility when they're prepared for it; that's how real money is made. Hedge funds betting on Brexit by shorting stocks were rewarded with bumper payouts, according to the Financial Times. The FT didn't even mention the hedge funds that had commissioned exit polls. They were no doubt the biggest short-term winners, esp. after the media reported all day on Thur. that Remain was heading for a victory. You can't buy that kind of publicity (or can you?). [Czech Republic investment banks speculation]