The markets were dealt a surprise at the end of the quarter with the United Kingdom’s referendum to leave the European Union after 43 years of membership. This event shocked investors and the betting markets despite surveys indicating the vote was a coin flip. Although European growth is likely to be negatively impacted, we do not believe this was a major event over the short-to-intermediate term. However, the referendum was a “canary in the coal mine” for a much larger, long-term issue that every developed country in the world will be forced to confront in the not too distant future. Specifically, the growing inequality over the last thirty years has left a large segment of the population disenfranchised and searching for scapegoats.