U.S. stocks traded off recent highs and bond yields fell again last week. After the disappointing employment report, 10-year Treasury yields have now fallen by 70 basis points this year. This week the Federal Reserve (Fed) has its June meeting and we may receive additional guidance about how the Fed views the impact of the recent employment data. I expect the Fed will hold off on raising rates given the upcoming Brexit vote.
The last few weeks have seen an uptick in uncertainty as a result of economic and geopolitical events. I expect this uncertainty will keep markets in a choppy range for the next several weeks as market participants look for clarity on Central Bank policy and more definite data on global growth. Stay defensive in this environment as markets and uncertainty are not a good combination.
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