Tag Archives: S&P United Kingdom Index
Balancing the Scales in U.K. Equity with the S&P 500
Our recent paper Why Does the S&P 500® Matter to the U.K.? argues that the S&P 500 presents an opportunity for U.K. investors to diversify their revenue exposure and sector weights across geographies. Since British investors typically suffer from a substantial home bias, such diversification presents an opportunity to improve the risk/return profile of a…
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Divining Brexit
The markets’ view of the pending British referendum on EU membership displays the hallmarks of a low probability, high impact event. Correlations, and volatility expectations, are the key indicators. When macroeconomic risk is dominant, as a select few narratives come to preoccupy investors, correlations increase. For example, in August and September 2015, markets worldwide were roiled…
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