Private Wealth Management Quarterly Viewpoint
Three short months ago, global financial markets were reeling from the surprising result of the Brexit referendum. Political leadership in the U.K. was in disarray and European leaders were calling for exit negotiations to immediately begin. From that rocky beginning, equity markets quickly recovered and stabilized after central banks stepped in.
Prices for stocks and other risky assets generally remained stable as long as the U.S. economy stayed on its slow- growth path and central banks were at-the-ready with accommodative monetary policies.
The Bank of England and the European Central Bank (ECB) pledged more liquidity. Further, the Federal Reserve did not raise interest rates even though the outlook for the U.S. was improving. Market calm returned – and persisted – since the U.S. economy continued to plod forward and central banks left monetary policy very loose.
Click on the following link to view the full version of the Quarterly Viewpoint for Third Quarter, 2016.