"It's a rational move to a shock event," said Richard Turnill, global chief investment strategist for BlackRock, when asked what he thought about the market's reaction to the U.K.'s decision to leave the EU.
He described the market's decline as "relatively orderly," backed by his observation that "there's been no evidence of panic selling."
For concerned Americans holding European equities, Turnill reiterated that "the European stock market is a very global stock market" with more than 50 percent of revenues for European and U.K. companies deriving externally.
Consequently, the "leave vote" has global implications, specifically in relation to interest rates.
According to Turnill, "A U.K. rate cut looks highly probable," while in the U.S., "a July hike now seems off the table." He expects U.S. rates to "remain lower than previously anticipated."
The post-Brexit market has been predominantly characterized by uncertainty. Turnill expressed similar sentiments saying that "it's going to take months, [if not] years, potentially, to resolve some of these political uncertainties."
He also believes that "the onus is not on central banks to support the economy anymore."
Instead, Turnill urged that we must shift the focus to the politicians responsible for shaping the fiscal and structural policy.