Post-Brexit: A “Risk-On” Market

A Risk on Market

The presidential election and the potential rate hike by the Federal Reserve are two hot topics right now. They will most certainly affect the market, but it’s tough to predict exactly what that will look like.

Take, for instance, the third quarter; it was surprising. Based on the Brexit vote at the end of June, the market anticipated a volatile environment. Did that happen? No. Instead the economy shrugged it off, and we had high-yield spreads that continued to get tighter and tighter. The low volatility was actually surprising.

That’s why fourth quarter predictions vary so much. Some economists are predicting stronger growth, and others expect a continuation of the trend to date. Find out our growth prediction in the video below.

The opinions expressed are those of Dave MacEwen and are no guarantee of the future performance of any American Century Investments portfolio.

This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.