Your Investments: What Worked and What Didn't in 2Q2016


After enduring a relatively flat 2015, investors are experiencing a bumpy ride in 2016.  Headline risk (the possibility that a news story will adversely affect a stock's price), caused a great deal of market volatility at the start of that year, continued into the 2nd quarter ending June 30th. In a persistently slow economic environment, investors are inclined to over focus on negative news.

CHART 1 (below) illustrates the volatility of markets through June 30th. During the 2nd quarter major headlines moved the spotlight off collapsing oil prices, a surging dollar, and slowing China, and squarely onto the “calamity” of the British exit from the European Union. Let’s get behind the headlines to the heart of the current situation.