Apparently the Brexit wasn't the end of the world after all.
Just a week after the United Kingdom shook up the world by voting to leave the European Union, market behavior has done a 180-degree turn. Major stock market averages have recouped much if not all of the post-Brexit panic, bond yields are tumbling and even currency markets have settled down.
"We've worried a lot about the euro zone through this recovery. Whenever the fear peaks, the right thing to do: buy," said Jim Paulsen, chief investment strategist at Wells Capital Management.
Paulsen considers the Brexit "a wimpy crisis" in that it jangled market nerves but showed little signs of being a fundamental disruption to markets.
"It might be a serious political problem, but the markets are rightly finding it's not going to be a major economic and financial hit," he added. "You can listen to the public rhetoric and you can listen to Mr. Market. Which side do you want to be on? I think the market message will be more accurate."
The message in recent days, indeed, has been to buy.
The S&P 500 is up about 5.5 percent since hitting a post-Brexit bottom Monday and looked to close the week out with modest gains Friday. Investors have been scooping up bonds, with the benchmark 10-year yield falling more than a quarter point from its pre-Brexit level. Yields and prices more in opposite directions.
Both bonds and stocks have gotten a bid from expectations for even looser central bank policies, said Aaron Kohli, fixed income analyst at BMO Capital Markets.