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Brexit Volatility Creates Opportunities
Brexit’s Ramifications Last week's referendum in the U.K. sent risk-asset markets into a tailspin, as investors wonder what "Brexit"—the U.K.'s exit from the European Union—means for the U.K., the E.U. and, by extension, global markets. The political, economic and market implications are significant for both sides of the English Channel, and beyond. It's critical, however, to understand how the process is slated to play out near term and farther down the road and to recognize the many questions and uncertainties regarding its repercussions while keeping them in perspective. As always, the key to successful investing in an uncertain world is carefully considering future prospects relative to current prices.
The degree to which Brexit and the associated economic and political risks in the U.K. and continental Europe affect the day-to-day operations of a company or a sovereign issuer must be evaluated against its current business or economic fundamentals and future prospects. The volatility in asset prices, after all, may well not reflect meaningful changes in those fundamentals. For long-term investors, such price dislocations can present excellent entry points to world-class, overseas companies or sovereign debt that, however the Brexit process plays out, continue to have excellent prospects.
The views expressed are those of Thornburg Investment Management. These views are subject to change at any time in response to changing circumstances in the markets and are not intended to predict or guarantee the future performance of any individual security or the markets generally, nor are they intended to predict the future performance of any Thornburg Investment Management account, strategy or fund. Additional risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Before investing, carefully consider the Fund's investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or visit our thornburg.com . Read them carefully before investing. Thornburg Investment Management®
© 2016 Thornburg Investment Management, Inc. All rights reserved. Thornburg Investment Management, Inc. mutual funds are sold through investment professionals including investment advisors, brokerage firms, bank trust departments, trust companies and certain other financial intermediaries. Thornburg Investment Management, Inc. does not offer personalized investment advice. Thornburg Securities Corporation (TSC) does not act as broker of record for investors. Not FDIC Insured, May Lose Value, No Bank Guarantee. |
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Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or visit our literature center. Read them carefully before investing: https://www.thornburg.com/forms-literature/product-literature/mutual-funds/index.aspx