posted on August 19, 2016 21:02
More than 10,000 athletes from 186 countries will battle for their respective medals. In exciting news for many sports enthusiasts, Rio 2016 is bringing back rugby and golf, which haven’t been seen in the summer games since the early 1900s. The stark contrast between these two sports exemplifies investors’ experiences with the markets in the first half of 2016. The first quarter was a bit like rugby – the market was thrown to the ground with a rough start to the year. It may have felt like your portfolio was being tackled, but by the end of the first quarter the market almost fully recovered. The second quarter was a bit more like the quiet game of golf – much more calm with the drama saved until the end with the Brexit decision in the UK jolting markets just before the quarter-end. Despite that volatility, markets bounced back in the final days of the quarter. As you can see in the illustration below, diversifiers such as alternatives helped to smooth out some of the volatility and boost portfolio returns. With the exception of international stock markets, most markets ended the quarter in positive territory.
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