Global Investors Were Risk Averse In June Amid Brexit

Deep value factors have failed again in June across most regions with a few exceptions, and such broad underperformance by deep value factors highlights that global investors have again exhibited risk averse behavior last month, note Morgan Stanley analysts. Charles Clavel and team provide some guidance for global equity investors on whether to reallocate portfolios in the post Brexit environment in their July 6 research piece titled “Is There A Post Brexit Playbook?”

High quality stocks outperformed junk stocks post-Brexit

Tracing Brexit-related uncertainty, Clavel and colleagues point out that global markets witnessed a sharp selloff in the two trading days after the U.K. referendum vote and an equally sharp rebound thereafter. In the absence of a historical precedent for an...