BofAML: Three Ways to Invest for the Coming Age of Populism

Wall Street is scrambling for a narrative to explain why Britain decided to leave the European Union. One narrative in particular is getting a lot of attention: whether this referendum decision marks a tipping point toward populism that will define politics in the Western world—and set up a new political backdrop for investors.

The argument that's captured their imagination at the moment is that the seemingly sudden appeal of populist movements across Western nations is a response to the decades-long trend of globalization, which failed to adequately reward the middle classes in advanced economies and decreased the ability of these groups to raise their standard of living via housing wealth and cheap credit.