Last week, the UK held a referendum on the country’s continued membership in the European Union (EU). It was widely expected that UK voters would choose to remain in the EU, albeit it by a slim margin, but instead 52% of voters backed leaving the EU, sending shockwaves through financial markets around the world. Technically, nothing has changed—the referendum is non-binding, the UK has not formally asked to leave the EU, and once it does, the process of separating will take years, during which time existing rules of trade and migration apply. Yet the response by financial markets was swift, with the British pound hitting a 31-year low against the dollar, stock markets around the world falling, and major credit rating agencies lowering the UK’s previously perfect credit rating. The outcome of this referendum has clearly spooked investors and is undermining confidence everywhere.