How to Protect Yourself in a Post-Brexit Market

Investors should stick to a playbook of 'quality, income and protection' this summer because second quarter earnings won't be stellar and volatility will likely return, said Nadia Lovell, U.S. equity strategist at J.P. Morgan Private Bank. 'Brexit changed the game in terms of increased market volatility as we head deeper into the summer,' said Lovell, adding that her year-end S&P price target is 2025, or 3.5 percent lower than the current 3,000 level. Second quarter earnings season kicks off in earnest next week with Wall Street expecting corporate profits to be down 4.4 percent year-over-year. Lovell said investors should expect the best growth in the consumer discretionary and healthcare sectors despite the fact that they both have lagged the overall market thus far in 2016. She said the outlook for second half 2016 earnings should improve due to the increased stability in the U.S. dollar and the rebound in oil prices.