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Canaccord Analysts Put Brexit In Context

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June 28, 2016 8:31 am
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Examining the markets dramatic reaction to Brexit, analysts Tony Dwyer and Michael Welch of Canaccord Genuity gave investors an overview of the biggest market event this decade.

Related Link: What’s The Difference Between Brexit And The 2008 Crisis?

Putting the U.K.’s decision to leave the European Union in the context of other market shocks, here are their key takeaways:

  • Brexit puts Fed on hold — the analysts believe a July or September interest rate hike is out of the question at this point.
  • Although there was certainly a great deal of panic Friday and Monday, it should be noted that there hasn’t been any real significant change of the underlying trend in the S&P or the 10-year US Treasury yield.
  • Historical returns following market panics — after some statistical analysis, Canaccord told investors that when the market has seen similar circumstances 1) the median gain 3 months later was 5.9 percent 2) the market rose 12 out of 14 times, with an average gain of 3 percent.
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