Fis Group Q3 2016 Outlook: The Revenge Of The Precariat Over Davos Man

PHILADELPHIA, PA, July 20, 2016 – FIS Group, a manager of U.S. and global developed, emerging and frontier markets equity portfolio strategies, today issued its Q3 2016 Market Outlook. The outlook looks at the risks the vote poses to political stability in Europe, the surging yen in Japan, fading fears of an imminent U.S. recession, and the results of a modest safe haven rise in the U.S. dollar for emerging markets.

The Revenge Of The Precariat Over Davos Man

The turmoil that erupted after the June 23rd Brexit referendum has purportedly prompted many people who voted “Leave” to rethink their decision. New PM Theresa May has stated that “Brexit means Brexit,” dimming hopes that the referendum’s results would be reversed; but also inferring that Article 50 will not be invoked until next year. May has also appointed a number of prominent Brexit supporters to her cabinet,
with David Davis heading the new “Brexit Ministry” and Boris Johnson installed as the Foreign Secretary. These pronouncements and appointments could indicate that she has succumbed to Brexit (despite her earlier opposition) or it could be a shrewd political strategy to allow its economic and political consequences to hit home with voters and force her former rivals to “own” the fallout if and when the public turns on Brexit and its proponents. If future opinion polls show that a decisive plurality of UK voters favor remaining in the EU, this would give the British government the excuse necessary to call for a second plebiscite.