CM's Perspective on the Brexit Vote

For the U.S. economy, we believe the largest impact of the UK leaving the EU, at least in the short run, is the strengthening of the U.S. dollar. An increase in the value of the U.S. dollar could lead to tighter financial conditions, though we don’t believe this will be enough to push the U.S. into a recession. Along with other mixed U.S. economic data points, the Brexit vote will likely force the Fed to continue its easy monetary policy. We see this as bullish for commodities such as gold, oil and other hard assets over the long run.

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Disclosures: Numbers shown in this report have been rounded.

Century Management reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this client update should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions, holdings or sectors discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

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