Global Market Outlook August 2016: The Post-Brexit TINA Trade

Optimism related to post-Brexit central bank stimulus continued to buoy global equities in July, even though oil prices slumped and initial central bank actions proved disappointing. Other supportive factors were a reassuring bounce-back in US employment growth, a relatively benign US earnings reporting season to date, and continued cautiousness from the Fed over when it might next raise interest rates. With sovereign bond yields plumbing new lows in the post-Brexit environment, the “TINA” trade – There Is No Alternative to equities – is now in vogue.