21 July 2016: Five investment lessons from Brexit
– Although opinion is divided on the significance of Brexit, we believe there are key insights that investors can glean from the UK referendum.
– As the results of political events become harder to predict, and as globalization faces increasing electoral pushback, investors must prepare for bouts of currency volatility.
– We continue to believe that economic growth and earnings momentum are more sustainable drivers of markets than political events. These fundamentals remain positive.
– We have increased our overweight on US equities versus high grade bonds. We are opening an overweight position in emerging market equities, and we are removing our overweight on euro-denominated high yield bonds.