Where to Invest in a Brexit World

The video discusses Citigroup's holdings in European debt securities and the impact of market volatility following a referendum. It introduces the 'volcano thesis' which highlights uncertainty, low investor confidence, and negative returns for equity investors. The discussion covers risk assessment, focusing on banks' roles and their improved capital positions. The FTSE 100's valuation relative to the Euro STOXX 50 is analyzed, considering currency impacts and the defensive nature of the UK market.

What were the three contributing factors to the 'volcano thesis' in the market?

• High levels of certainty, high investor confidence, and a strong year for equity investors

• High levels of uncertainty, high investor confidence, and a strong year for equity investors

• High levels of uncertainty, low investor confidence, and a tough year for equity investors

• Low levels of uncertainty, high investor confidence, and a weak year for equity investors

How much downside is there on a price to book basis for European shares compared to the last major crisis?

• 20% lower

• 30% lower

• 10% lower

• 40% lower

What is one reason the UK equity market is considered more defensive?

• High exposure to European markets

• Strong performance of the Euro

• Weak performance of the US dollar

• Protection from downside risks in sterling

What is the UK 7?

• A group of US companies with high UK exposure

• A group of European companies with high UK exposure

• A group of UK companies with high non-European exposure

• A group of UK companies with high European exposure

What factor is often key in determining the performance of the Footsie 100?

• European market trends

• Currency performance

• Domestic consumer cyclicals

• US market trends