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Two bits of information are important to reiterate today: Bonds are a safe haven for investment dollars and Bonds thrive on economic uncertainty.  Investors use these secure vehicles (bonds) as safety nets when the risk of leaving assets in the stock market is greater than one’s intestinal fortitude will allow for comfortably.  Consequently, the cost of entry into the bond market rose sharply this morning (driving down yields in the process–more on that later) as news hit the wires that the citizens of the United Kingdom had voted by a slim majority to leave the European Union.  Now former Prime Minister of Britain David Cameron resigned after the vote to leave was finalized.  It’s that bad.  The price of Gold is also up almost 5% this morning.

The Fed Funds futures market is claiming that a July rate hike is off the table and that there is only a 12% chance that the Fed will hike rates at any subsequent meeting in 2016.  Makes Fed Chair Janet Yellen seem like a prophetess given her remarks to Congress earlier this week.  The net result of all of this is lower interest rates all across the board.