The UK has voted to leave the European Union after 40 years of membership, defying the expectations of most market participants and ignoring the warnings from the International Monetary Fund and other leading economists regarding the negative impacts on trade.
After the United Kingdom (UK) voted to leave the European Union (EU), the global markets shifted to a “risk-off,” with global stocks, the British pound, and the euro all declining while the U.S. dollar, gold, and high-quality U.S. bonds rallied.
Britons voted to exit the European Union on June 23, marking the first time any country has left since its formation. The political consequences for Britain’s Prime Minister were swift, and people around the globe reacted with shock and confusion.
Some investors may think that their investment portfolios aren’t “making the grade” because they started investing at a point in the market cycle that has resulted in meager gains or even short-term losses.
Ron Colonna, CFA Managing Director, Investment Advisor – Deutsche Bank Wealth Management
Wednesday, June 1, 2016
With expectations of sustained low and negative yields globally, the desire to find yield on cash investments has become increasingly intense. However, navigating the low yielding and ever changing environment of cash investing poses many challenges.
Millennials, in general, are avoiding the financial markets and instead keeping more of their money in bank accounts despite historically low interest rates. Just 26 percent of people under 30 invest in stocks, according to a 2015 survey by Bankrate.com.