After months of fierce debate and a policymaking hiatus, the United Kingdom (UK) electorate has voted in favour of leaving the European Union (EU). While the broad direction is set, companies will still face considerable uncertainty until the UK’s exit strategy is defined and trade negotiations (including the trans-border movement of people) with the EU and other countries are completed.
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What has been called a “soft revolution” in the UK may also be thought of as the “revenge of the 99%.” The final implications of the decision to leave the EU will not unfold for many years, but some of the initial economic and market impacts are becoming evident. Interestingly, one “winner” in this scenario may be the U.S. consumer. A stronger dollar generally reduces the cost of imports and reduces the Fed’s impetus to raise interest rates. On the broader spectrum, Brexit should not interrupt domestic consumer spending or the recovery in the U.S.
The outcome of the United Kingdom’s referendum to leave the European Union has stunned forecasters and market participants. The market responded in dramatic fashion to the news, triggering economic repercussions where the Euro fell against the U.S. Dollar from 2 percent to 8.5 percent. Meanwhile, safe haven bond markets rallied up to 25 basis points. As heightened risk premiums filter into global markets, we advise investors to focus on long-term perspective of how events may play out and how markets and portfolios may respond.
NEPC's Christopher Levell, ASA, CFA, CAIA, Partner, hosted a webinar discussion on Wednesday, June 29, 2016 on the effects of the United Kingdom’s referendum to leave the European Union. The UK’s vote is an unprecedented event that has major implications for global markets both in the short and long term.
In a historic referendum, Great Britain voted to leave the European Union, and the “Brexit” impact on the global markets was immediate—evidenced by market movements where the British Pound, the Euro, European equities, and UK equities were hit hardest. The next steps for Brexit will take some time, and political risks will increase uncertainty, which will dampen UK and European growth prospects. But what does “Brexit” mean for the broad capital markets?
Atlantic Trust CIO David L. Donabedian, CFA, and Head of Fixed Income Gary E. Pzegeo, CFA, hosted a live webinar in which they analyzed fallout from the Brexit vote and assessed:The economic outlook in Europe and the U.S.The impact on equity and credit market fundamentalsWhat central banks will doWhether other nations will leave the EUThe Portfolio implications
The United Kingdom’s “Brexit” vote to leave the European Union (EU) triggered a heightened level of market volatility that had several implications for stocks, bonds, currencies, and commodities. The vote will lead to long-lasting negotiations between the British government and the EU, and periods of geopolitical, economic and global financial-market uncertainty in the coming months and years as a result. Some investors may be wondering, “what now” following the buildup and global financial market disappointment with the Brexit vote.
Once an investor decides to allocate to metals, questions often arise concerning “How do I buy gold and what are the best practices around ownership?” Several steps will lead to an informed decision and illuminate how best to tailor a strategy to meet your needs and protect your wealth.
As an entrepreneur and a leader, you have had to back yourself over and over again, often in the face of uncertainty or adversity. You have learned to trust your instinct. However, as you transition to the next phase of your life, your family is going to require a different form of leadership from you. The style and approach that has underpinned your success for the preceding decades is not necessarily the same style and approach that will sustain your legacy over future generations. However, there are some simple steps you can take to begin the process of change.
Working together in a family enterprise—across generations and between branches—can be complex. Some families will arrive at this fork in the road quite abruptly, perhaps due to a catalyst event such as the sale of the family’s primary asset, or the passing of a key family leader, while other families will wind their way around to this decision point over time.