Weekly Market Commentary 07/08/2016

The monthly jobs report on Friday took the headlines away from Brexit, at least temporarily. To be sure, the aftershocks of the U.K. referendum continue to resonate through the financial and currency markets, and economists will debate their ultimate effects for some time to come. While not downplaying the significance of the surprising vote to exit the EU, from our lens the jobs report has more important implications for the U.S. economy. In any event, we believe the global markets have overreacted to Brexit, reflecting a time-honored response to a sudden shock that ignites an upsurge in uncertainty.