The following is an excerpt from a Global Investment Management Special Market Update. To read the full update, click here.
The “leave” victory was a surprise to financial markets and the world. The United Kingdom voted to leave the European Union in a 52 to 48
vote and will be the first country to do so since its formation. U.K. Prime Minister David Cameron has resigned in the wake of the vote and financial markets have been turbulent. The S&P 500 Index has lost almost 3 percent this morning, but seems resilient when compared to the over 10 percent declines experienced by some European stock markets.
Investors are seeking safe-haven assets, which has pushed the yield of the 10-year Treasury down to approximately 1.56 percent. Britain’s exit will be a slow structural process that will likely take several years. We believe the U.K. will take the brunt of downward economic pressure and the team remains fairly positive on the domestic growth outlook. The Global Investment Management team proactively reduced equity risk in our strategies earlier this year and continue to closely monitor the situation.Read More ›
The Brexit vote is in. Markets around the world rallied yesterday as it appeared from numerous polls that the vote would sway toward the remain camp. But when the vote was finally tallied, the leave camp took the day. Key observations: The financial market reaction has been swift, and the U.S. market will not be […]Read More ›
Financial volatility is on the rise and uncertainty is high enough to keep the FOMC in a holding pattern until the storm clouds dissipate.Read More ›
The doves reigned supreme at the June FOMC meeting. As expected, there was no change to the Fed funds target rate, which remains at a range of 0.25 to 0.50 percent.Read More ›