Reconsidering Brexit's U.S. Market Impact

Michael Purvis discusses the short-term resilience of equities post-Brexit, highlighting the support for safe haven assets like Treasurys and the relatively stable dollar. He explains the significance of the VIX curve as a market signal and the potential long-term implications of Brexit on global markets. Despite the recent market rally, Purvis notes the lack of immediate tradeable events and the slow pace of Brexit developments.

What factor does Michael Purvis mention as being constructive for global equities post-Brexit?

• Decreasing unemployment rates

• Rising commodity prices

• Support for sovereign yields

• Increased corporate earnings

How does the VIX curve behave during periods of market stress?

• It slopes downward

• It becomes flat

• It becomes inverted

• It remains unchanged

What does a return to a normally sloping VIX curve indicate?

• Decreased market liquidity

• A signal to buy the market

• Increased market volatility

• A signal to sell the market

What is the potential risk of Brexit according to Michael Purvis?

• Rapid EU reconstruction

• Instant market recovery

• Immediate economic collapse

• Slow-paced EU changes

What was one reason for the recent US market rally, aside from Brexit?

• Increased consumer spending

• Improved trade relations

• New government policies

• End of quarter rebalancing