Sluggish Sentiment

The first post-Brexit US economic data point came out Friday, and it showed that consumer sentiment declined from 93.5 in June to 89.5 during the first 10 days of July; hardly surprising. Record numbers of households mentioned Brexit, including nearly one-in-four households in the top third of the income distribution. Given the rapid rebound in equity prices and prolonged low interest rates, this negative effect will be very short lived.