After a run toward record highs in stocks last week, there may be better clues on why the rally faltered: the market hadn't priced in Brexit. In fact, it's probably still unprepared for the event if it happens.
"I think stocks on the whole are feeling that concern. They (were) pricing in none of the risk," said Jason Pride, director of investment strategy at Glenmede Trust. As stocks in the last few days have moved lower under increasing concern, he would expect "more volatility and anxiety" heading into the vote as Brexit becomes a stronger factor for the market.
Two-thirds of fund managers think Brexit is "unlikely" or "not at all likely," according to the Bank of America Merrill Lynch June fund manager survey. The survey was completed from June 3 to 9, meaning those optimistic results show just how much Wall Street was not pricing in Brexit — until the latest slew of polls.