Market commentary, 2nd Quarter 2016

Despite the uncertainty stemming from Britain's decision to leave the European Union, U.S. stocks finished the quarter up 2.46% as investors anticipated further positive economic data and low interest rates. In contrast, developed international equity markets were down on the news of Brexit and the forecasted negative effect it will have on growth in Europe. Emerging markets were up as commodities continued to rebound from last year's lows and interest rates in the United States remained near zero. The Fed deferred further rate increases on weaker-than-expected May unemployment figures and Brexit-related uncertainties within the global economy. Mutual fund investors increased their holdings in both stocks and bonds. For the quarter, stocks had a net inflow of $16.1 billion and bonds had a net inflow of $11.3 billion. Total money market mutual fund assets decreased by $47 billion to $2.7 trillion. The unemployment fell from 5.0% to 4.9% as total employment increased by 453,131 jobs this quarter. The price of oil rose from $37 per barrel to $48 during the quarter.