Sage Advice Quarterly Market Review 2Q2016

The majority of the second quarter was relatively calm for both fixed and equity investors, until June, when a weak US employment report and Brexit provided fireworks into quarter end. The first quarter risk asset sell-off and subsequent rebound, increased policy support from ECB and BOJ, and optimism toward US growth provided a stable backdrop for investors. Into early June, US rates and spreads remained range bound, global equity markets grinded higher, and commodity prices continued to recover. However, a much weaker than expected employment report in the US, cast doubt on economic momentum. Three weeks later, the UK referendum vote to leave the EU caused extreme volatility across global equities, rates, and currencies.