5 Lessons Investors Can Learn from 2016

Few would have predicted that in a year where the UK voted to leave the EU and the US elected a reality TV star as president, equity markets would be higher

Cherry Reynard 30 December, 2016 | 3:07PM
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2016 held some considerable surprises, not just unexpected political events, but financial markets’ response to them. Few would have predicted that in a year where the UK voted to leave the European Union, and the US elected a reality TV star as president, equity markets would be higher. What lessons can be drawn from the events of 2016?

1. Macroeconomics influence markets in the short-term, but are inherently unpredictable

Macroeconomics has undoubtedly influenced markets in 2016. There was the post-Brexit rally in large cap equities, and the ‘reflation’ trade in the wake of the US election result. Also, Brexit will have a real influence on some companies who trade with Europe, so cannot be ignored.

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About Author

Cherry Reynard

Cherry Reynard  is a financial journalist writing for Morningstar.co.uk.

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