Wise investor capitulation?
It is clear that some investors have capitulated and put their cash to work by buying risk assets. Better news from the US economy, more policy easing in Asia, and less angst in Europe have all helped to send risk assets higher. Looking back on recent developments, it seems that Brexit has been taken as a positive by the markets as it has forced policymakers to ease quicker than had previously been expected. In the case of the Federal Reserve, it is assumed that it has delayed a rate increase for some considerable time.