Following the surprising outcome of the E.U. referendum, volatile market conditions caused a slump in many stocks, commodities and currency pairs. Users of the Tradebird social trading app have actively discussed market activity and indicated whether they're bullish or bearish on a range of important investments. Here are five they expect to decline in value. (To see five investments they like, click here.)
1. Pound/Dollar Currency Pair: After the U.K. currency dropped 10% against the dollar to its weakest level in 31 years, the trading community said it was 68% bearish on the value of the pound against the greenback.
2. Dollar/Yen Currency Pair: Japanese Finance Minister Taro Aso announced Japan will respond as needed to "extremely nervous" currency moves, signaling action to strengthen the yen. Sentiment on the dollar vs. yen is 81% bearish.
3. FTSE: The trading community is 56% bearish about the U.K.'s FTSE 100 stock index following the Brexit decision. Shares of London's big banks have fallen the most since the 2008 financial crisis.
4. DAX: Also in response to the U.K.'s decision to leave the EU, eurozone member states had a horrible trading day. Germany's blue-chip DAX stock index is down 7.23% in the last month, and Tradebird users are 64% bearish on this index.
5. Bitcoin: In times of political turmoil, Bitcoin and gold reflect similar market activity. Bitcoin surged in the wake of the Brexit news, but it still has a 71% bearish sentiment among the trading community.
The above data were gathered from Tradebird, the social app for traders and investors, during the week ended Friday, June 24.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.