Weekly Market Recap Issues related to the UK's expected exit from the European Union continued to make headlines this week. The UK saw its sovereign credit rating downgraded by S&P from 'AAA' to 'AA' citing a "less predictable, stable, and effective policy framework in the UK". The UK has not, at this point, triggered Article 50. Article 50 would mark the formal start of the process of the UK's departure from the European Union. In the US this week, Q1 economic growth was revised upward to 1.1% growth over the prior quarter, and consumer confidence for June made its highest reading of the year so far. US house prices showed modest growth, according to the Case-Shiller Index. The recent moves in the market around the recent Brexit news demonstrate how asset class diversification can be valuable to portfolios. During periods of stock market weakness around the Brexit announcement, higher quality fixed income assets, such as government debt, generally rose in value. Though this relationship is not universal, it has frequently been the case historically, that rises in bonds can moderate declines in stocks at times of economic uncertainty. Therefore, bond exposure can be helpful in smoothing portfolio returns. Notes:
S&P downgrade of UK credit rating:
http://www.bbc.com/news/business-36644934
US GDP:
http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm Disclaimer:
The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor or First Republic Investment Management. All expressions of opinion are subject to change without notice in reaction to shifting market, economic political conditions, and as subsequent conditions vary. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. This material may contain "forward-looking statements": information that is not purely historical in nature. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Summary | $9,629.73 * Your Total Assets | Ways To Improve Your Portfolio | 0 Accounts with Actions | Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps  |  | Action Required - keep your recommendations accurate | | Your financial institution requested additional authentication to keep your investment accounts synchronized to FutureAdvisor. Keeping your accounts synchronized allows FutureAdvisor to monitor and keep you up-to-date on your investments and recommendations. | | Please log in to fix this in your Financial Profile. | | Sign in to see your full dashboard | * All amounts are as of the sent date of this email | 
No comments:
Post a Comment