by Gerardo Del Real
After an initial panic and sell-off in global markets due to the Brexit vote, there are clear trends that are beginning to develop.
The S&P 500 has now recovered all of the losses from the initial sell-off, bond yields are at new lows, the pound is at a 31-year low, and European banks are down 19%.
As I mentioned before, there will not be a stock market crash here in the U.S. Volatility? Yes, but there’s too much capital from overseas that will look for a safe home. The U.S. will continue to be the safest option and that will support bonds and stocks for a while.
A better than expected jobs report showed that 287,000 jobs were added in June, well above economists’ expectations of 175,000. The report led to a brief sell-off in gold but it rebounded strongly and is near a two-year high. Silver posted slight gains for the week, but like gold, also posted its sixth weekly gain.