Insights

3rd Quarter 2016 Market Review

In spite of mostly lackluster economic results around the world, financial assets posted another solid performance in the third quarter of 2016. Once the surprising vote in late June by the UK to leave the European Union was digested, the markets settled into a relatively quiet drift upward that ended in mid-September.

That calm ended dramatically as investors began to question the assumptions around the path for higher interest rates in the US. With several Fed governors arguing for another hike in September after the solid August jobs report, both stock and bond markets reacted negatively until Chair Janet Yellen allayed market fears about a faster pace of tightening.

At this point, odds remain high of another December hike (following last December’s bump), but the longer-term outlook for higher rates remains subdued. If rates continue to remain at low levels and/or the rise is gradual and predictable, the backdrop for financial assets should remain favorable.

 

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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