Canaccord Analysts Put Brexit In Context

Examining the markets dramatic reaction to Brexit, analysts Tony Dwyer and Michael Welch of Canaccord Genuity gave investors an overview of the biggest market event this decade.

Putting the U.K.’s decision to leave the European Union in the context of other market shocks, here are their key takeaways:

Brexit puts Fed on hold — the analysts believe a July or September interest rate hike is out of the question at this point.

Although there was certainly a great deal of panic Friday and Monday, it should be noted that there hasn’t been any real significant change of the underlying trend in the S&P or the 10-year US Treasury yield.

Historical returns following market panics — after some statistical analysis, Canaccord told investors that when the market has seen similar circumstances 1) the median gain 3 months later was 5.9 percent 2) the market rose 12 out of 14 times, with an average gain of 3 percent.

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