In this piece, CIO Jonathan Lewis and Senior Vice President of Quantitative Strategies, Iraj Kani discuss whether the possibility of Britain leaving the European Union (Brexit), lackluster macroeconomic data and central bank policy responses provide a risk-on opportunity.
- Although we believe the trends in intermarket relationships highlight fears for the global economy ahead, the economic data released in recent days was neither notably weak nor notably strong.
- Despite volatility indicators having risen in the past few weeks, we believe that the data suggests that this is a scare, not a crisis.
- The destabilizing effect of a stronger US dollar amongst current geopolitical and global contexts suggests that the Fed is unlikely to raise rates.
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