Remain Calm, Exit Strong?
We have negative or near zero interest rates and negative or near zero government bond yields. (According to Jefferies' Sean Darby, "the percentage of equities within the S&P 500 and Eurostoxx with dividend yields above their bond yields is one third and 80% respectively". What counts is the dividend cover.)
The Fed is tap dancing to the tune of all others, watching global markets closely to tackle its own inflation target of 2%. Bank of Japan, similarly has its own problems and is yet to devalue the Yen.
We are bereft with confusing leaders such as Sturgeon; the politician who fought for Scottish independence but wants to remain in the EU.
This is not all we have to contend with. We also have terrible radical terror attacks on innocent people happening at alarmingly increasing rates.
In this toxic investment environment of never-before-seen events, investors have little else to do but to question everything; including current central banks with their 'one-size-fits-all' economic policies.
We all sometimes wish to clear the decks and start all over again but we must not make knee jerk reactions or investment decisions.
The reasons to 'remain' may be to keep the calm and work with the current and future EU policies and partners. On the other hand, the reasons for 'exit' may be to see if we are strong on our own.
When choosing our next step we must remember the old adage 'from the hot pan into the fire'. There is no need to vote for the wrong candidate for the right reasons.
As we thrive for higher returns and better outcomes, we must invest well.
Please remember also, to vote responsibly.
#EUreferendum #Brexit #Voting #Investments