Market Update #4 – June 24, 2016
TGIF! The closing bell could not have rung soon enough this afternoon and it will be good to let things settle down a bit over the weekend.
By the time the market closed, the Dow Jones Industrial Average and the S&P 500 both pulled back by around 3.5% for the day, and were down roughly 1.5% each for the week1.
In the grand scheme of volatile weeks, this was not a tremendous outlier, but it was the sequencing of the returns that grabbed everyone’s attention.
An attribution of the day’s outcome is two-fold:
- Give back from the last week and a half of Brexit-vote-optimism-driven gains and;
- Ambiguity as to the actual impact the UK secession from the EU will have on the global economy and its timing.
I mentioned this morning that market’s hate surprises and they have an equal distaste for uncertainty. The British exit from the EU is both.
We are going to resist the temptation to draw long-term investment implications on the merits of a development that is not yet 24 hours old.
It is fair and even responsible to consider that this defection from the EU could be a positive move for the Brits once they get past the transitional period.
It is hopeful that the Brexit will catalyze a global bureaucratic introspection.
Much will be written/said/tweeted/posted over the weekend. Much will be misleading.
We’ll do our best to decipher the information from the noise and communicate back as to how such information will be reflected in your portfolios – always considerate of the unique objectives possessed by our clients.
Thanks for your confidence in Kavar Capital and have a great weekend! dc
1Source: Bloomberg Market Data
Important Disclosures:
The views expressed herein are those of Douglas Ciocca on June 24, 2016 and are subject to change at any time based on market or other conditions, as are statements of financial market trends, which are based on current market conditions. This information is provided as a service to clients and friends of Kavar Capital Partners, LLC solely for their own use and information. The information provided is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy or investment product, and should not be construed as, investment, legal or tax advice. Past performance does not ensure future results. Kavar Capital Partners, LLC makes no warranties with regard to the information or results obtained by its use and disclaims any liability arising out of your use of, or reliance on, the information. The information is subject to change and, although based on information that Kavar Capital Partners, LLC considers reliable, it is not guaranteed as to accuracy or completeness. This information may become outdated and we are not obligated to update any information or opinions contained herein. Articles may not necessarily reflect the investment position or the strategies of our firm.