摘抄

The fault of what took place with the "Brexit" vote last Thursday lies not with the British voter. Instead, it's nobody's fault other than the leadership of pro-EU British politicians and the European Union itself that has failed to deliver on the great promise of the common market for so many of the general population across the continent including even remotely effective fiscal policy over the past decade since the financial crisis. And it's nobody's fault other than these same leaders that were unable to find a way to convince the disgruntled that they need to hang in there with the experiment for the potential future benefits down the road.

Looking ahead, fiscal policy makers across Europe and many parts of the rest of the developed world for that matter INCLUDING the United States (NYSEARCA:SPY) need to wake up and recognize the reality unfolding around them today. Monetary policy makers have generously bought you time to take the necessary action to fix the global economy by doing the things that central banks simply cannot do nor should they. Time is quickly running out and people are becoming increasingly frustrated as evidenced by the rise of the far left and far right in many countries across the developed world. And the fact that you are not getting re-elected is not because the voter is misguided or ill-informed. Instead, they are mad. And devising ways to hold another vote or organize a revolt among delegates at a convention to try and right the "wrongs" of the voter is not the answer. Instead, it is coming together with other policy makers from various sides of the political aisles to figure out solutions that are going to fix the underlying problems plaguing the economy once and for all.

For if action is not taken soon, the demise of the European Union will become increasingly likely. It will not be just the United Kingdom moving to the exits, but it will also be Italy, and Spain, and Greece, and the Netherlands, and France. And in the process the entire common market experiment will effectively collapse. Until fiscal policy makers finally wake up to the reality unfolding around them with increasingly troubling speed and begin to change their ways, the eventual demise of the European Union will become an increasingly high probability scenario.

Until then, a prudent investment strategy includes remaining defensive including favoring safe-haven assets over higher-risk alternatives. Within stock portfolios, defensive allocations should continue to outperform cyclical and economically sensitive names despite their relatively rich valuations. Moreover for U.S.-based investors, companies with a more domestic focus is also sensible from a risk management standpoint.

The "Brexit" vote has the potential to be the very beginning. And the fact that fiscal policy makers across the world remain relatively tone deaf to the crises unfolding around them, it is very likely that the rapidly growing monkey is going to remain strapped to the back of global financial markets for the foreseeable future. Thus, a prudent risk management approach remains warranted.

Full article.

And my comment:

The Fed's no-hike decision a few weeks ago is a non-event. I have a feeling that financial market is losing faith to expansive monetary policy, even in the U.S.

It would be disastrous...