The FTSE 250 has responded in much the same way as the UK benchmark simply because the risk premium has contracted significantly since the market panic that ensued following the referendum. The financial services, construction and real estate sectors pulled back sharply following the vote but subsequent economic data supported the view that the sell-off was - at the very least - premature. However, it's certainly conceivable that we could witness another sharp index contraction - and ensuing market volatility - once clause 50 of the Lisbon Treaty is formally initiated. Suffice to say, with index values at record highs, it's a long way down for investors.
