"Global growth is weak, and will be eroded further by Brexit.
Oil prices are low, and likely to plunge further.
The world has excess capacity and a wage-depressing labor surplus.
Corporate profits are shaky.And deflation is laying bare the impotence of central banks.
So where would you logically expect financial markets to be going, given that economic, financial and political environment?
You’d expect to see increased demand for safe-haven U.S. Treasuries, a soaring dollar, falling commodity prices, and increasing investor aversion to junk bonds, emerging market debt and equities and other low-quality securities.
But that’s not the case..."
...But Europe offers an example of what might happen if things reverse.
The region's benchmark Stoxx 600 index is down more than 5 percent this year, erasing almost all of 2015's gains.
In this environment, investors should hold universally-large cash positions until there's a clearer picture of what comes next."
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