Tag Archives: Brexit

Indexing Alternatives To Survive Brexit

Following the vote by UK citizens to officially leave the European Union, the S&P 500 lost 5.3% in 2 days (Jun. 24-27, 2016) before gaining back 4.5% for a total loss 1.1% through July 5.  In those two down days, gold posted its best consecutive 2-day gain since Aug. 8-9, 2011.  Gold is known as a Read more […]

How the Brexit Affected Rates and Currencies in LatAm

After Brexit polls said that the referendum would end with a stay in the European Union (EU), all markets reacted as if that would be the outcome on voting day.  After the announcement that the U.K. would no longer be part of the EU, all markets were shocked, and the emerging markets of Latin America Read more […]

The S&P 500® Dynamic Gold Hedged Index Increased in Reaction to Friday’s Brexit Vote

Gold often rallies in times of intense market turmoil, as the safe-haven asset is perceived as a hedge against economic and financial risk.  This was one of the rationales for constructing the S&P 500 Dynamic Gold Hedged Index.  What happened on Friday, June 24, 2016, clearly demonstrated the effectiveness of the strategy in terms of Read more […]

Navigating Brexit

Despite some warnings from volatility gauges, the market had “priced in” a vote for remain from the UK’s population.  This has made for some dramatic headlines, and large movements since the vote to leave the EU was announced.  As the market scrambled to make sense of the political chaos, three key themes have emerged from the Read more […]

Gold Shines With Its Biggest 2-Day Gain Since 2011

According to my colleague, Howard Silverblatt, Senior Index Analyst, “The S&P 500 posted a $317.2 billion fall, after Friday’s $656.9, making the two-day fall $974.2 billion – the third worst on record.  The 2-day point drop of 112.79 was the second worst point drop on record, and on a percentage basis, the 5.37% decline for 2-days is Read more […]

Braced for Brexit

To say that global financial markets were surprised by results of the June 23rd Brexit referendum would be an understatement. Most market observers had anticipated a victory for Remain. When the Leave camp won, global financial markets reeled from the shock. Low volatility strategies are designed to attenuate returns in either direction, and as such, Read more […]

Rieger Report: U.S. Bond Safety Valve for Brexit Hangover

Thursday’s Brexit vote and subsequent market reactions have helped push U.S. bonds higher as investors continue to seek shelter from volatility and the uncertainty of what the future holds for the global economy. While the S&P 500 Index has seen a decline of over 2.7% in June, the 10 year U.S. Treasury Bond has returned over Read more […]

Stay or Leave, the Brexit Vote Will Have an Impact

The latest weekend survey by the Daily Mail predicted the outcome of the June 23, 2016, U.K. vote in the “stay” column 45%-42%, as European markets either ralied or rebound on the news—depending on their timing and view of the situation.  The vote, which has been talked about for a while, came to the front Read more […]

A Possible Brexit, a Weak Pound, and an Outperforming U.K. Gilt Bond Market

Year-to-date, the U.K. gilt market has performed the best out of all of Europe’s safe-haven government bond markets.  The S&P U.K. Gilt Bond Index has returned 6.15% YTD, one of the highest in Europe.  Yields in U.K. gilts have tightened by 41 bps since the beginning of this year, with the S&P U.K. Gilt Bond Read more […]

Divining Brexit

The markets’ view of the pending British referendum on EU membership displays the hallmarks of a low probability, high impact event.  Correlations, and volatility expectations, are the key indicators. When macroeconomic risk is dominant, as a select few narratives come to preoccupy investors, correlations increase.  For example, in August and September 2015, markets worldwide were roiled Read more […]