Meanwhile, the end of June brought the UK’s EU referendum, followed by Spain’s general election, both of which have affected markets so far this year. But worries do not stop there. The US presidential election in November will have a huge impact, and France and the Netherlands have general elections the year after. Many have observed a move away from the centre in politics, and more toward extreme political ideas. If that is the case the consequence will be greater uncertainty in global markets, which will have an effect on economic growth and investments.
The key point for fixed income in the future will be to be flexible. Markets are more extreme than before the 2008 crash, and mistakes in diversification can be expensive.
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