Edge Capital Research Team
Higher Growth Doesn’t Always Mean Higher Returns
Recent fears regarding Brexit and its potentially detrimental impact on economic growth have market prognosticators worried about the resulting side effects on financial markets. In the case that slower global economic growth ensues, equity market returns are not necessarily headed lower. There are many variables that affect future market returns, economic growth being just one. Given the several factors that affect future returns and one’s ability to predict each accurately, investors must be careful not to over emphasize recent political or economic events in building their expected return assumptions.