Insights

2nd Quarter 2016 Market Review

After the stock market’s early-2016 plunge was largely recouped by the end of the first quarter, equity prices settled into a narrow trading range from April to early June. That relative calm was punctured on June 23 by the surprising vote by the UK electorate signaling its desire to leave the European Union. The unexpected victory by the “Leave” campaign sent markets into a tailspin, as investors fretted about the economic and political implications of a fracturing EU. But the panic selling lasted only two days, and US stocks recovered all of their losses over the next four. Despite the innumerable uncertainties surrounding the longer-term impact of Brexit, the “buy the dip” mentality was in full swing.

The other notable occurrence in the second quarter was the continuing plunge of interest rates across the globe. According to data from Bianco Research, at quarter’s end, more than one-third, or $12.7 trillion, of all sovereign (government) debt outstanding was yielding less than zero, and only 6% of sovereign debt carried a yield of more than 2%. In this upside-down environment, a yield of 1.4% on 10 year US treasury bonds looks attractive to some.

 

Learn more about Bruce D. Simon.

 

This report is the confidential work product of Ballentine Partners.  Unauthorized distribution of this material is strictly prohibited.

The information in this report is deemed to be reliable but has not been independently verified. Some of the conclusions in this report are intended to be generalizations.  The specific circumstances of an individual’s situation may require advice that is different from that reflected in this report.  Furthermore, the advice reflected in this report is based on our opinion, and our opinion may change as new information becomes available.

Nothing in this presentation should be construed as an offer to sell or a solicitation of an offer to buy any securities. You should read the prospectus or offering memo before making any investment.  You are solely responsible for any decision to invest in a private offering.

The investment recommendations contained in this document may not prove to be profitable, and the actual performance of any investment may not be as favorable as the expectations that are expressed in this document.  There is no guarantee that the past performance of any investment will continue in the future.

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