Asset Allocation for June 2016

May was a difficult month for financial markets. After the correction at the beginning stocks have made a new attempt to rich historical highs. But the growth was sluggish, the volume was low.

Weak earnings season in US and a drop in EPS and revenue growth forecasts for the following periods brought to sell off in equity markets. Likewise investors prepared for commodity prices downfall. But oil prices remained high despite storage growth in US and oil output upsurge in OPEC countries.

In June a few significant events are expected that should define a trend of global markets for the next months. Investors will intently follow negotiations in OPEC meeting, rate decision by FED in US and the results of BREXIT referendum that could determine the future of modern Europe.

Threat and challenges in world markets:
   - Presidential Elections in US (8th November 2016)
   - Toughening of FED monetary policy
   - Credit market bubble in China
   - Rapid destabilization in the middle East and jump in oil prices
   - BREXIT – UK referendum (23th June 2016)


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