We experienced a very quiet, low-volatility market for the first two months and 3 weeks of the 2nd quarter. Then the Brexit happened!
For most of the quarter, equity investors continued the trend of climbing the wall of worry. The quarter saw concerns over the job market (only 38,000 jobs created in May), no growth in corporate earnings (for the 4th consecutive quarter), uncertainty over future Federal Reserve rate hikes, and anticipation of the British referendum over whether to stay in the European Union. But in the midst of all these concerns equity markets slowly climbed higher. It was not until June 24, when the surprise result came out of Britain to leave the EU, that the markets received a jolt of volatility. Continue reading