Blog

Jun
24
Brexit’s Effect on Our Financial Market

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On June 23rd, the major U.S. equity markets were up 1.3 – 1.6%. Today, after a surprising yet rather resounding BREXIT vote of 52% to 48%, the same U.S. indices are down about 3.0%. Net, it’s a loss of ~2% and in the grand scheme of investing, this is market noise and markets look to end the week close to where they began.


International equity markets have larger gain and loss numbers, but the net effect is similar. It is emotional. It is scary. But that is exactly why investing in rules-based and tactical strategies can add real value. We do not make decisions on emotions, but rather invest seeking growth in most market environments.


The U.K. and European economies will not implode today. No one is going to close the Chunnel, the U.K. withdrawal will most likely be orderly and take years to implement. There are already two countries, Norway and Switzerland, who are not members of the European Union but are part of the European Economic Area. The blueprint of interacting with the European Union (EU) as a non-member already exists and the process of getting there also exists. Certainly there will be some economic turmoil and pain, but BREXIT, in and of itself, is not likely to start the beginning of the end of The European Union. Perhaps it will cause the bureaucrats in Brussels to wake up and address the needs and fears of their peoples. If so, the British just did the EU and perhaps the world an incredible favor.

We have likely already entered a period of higher volatility in the equity markets. Legacy Wealth Partners will continue to monitor the landscape as well as opportunities and would be happy to discuss this situation further.

Sincerely,

Andrew Feldman

Legacy Wealth Partners
Cell: (970)390-9320
Office: (720) 552 8196
www.lwp-llc.com

www.facebook.com/LegacyWealthPartnersColorado/

*All investments have a risk of loss. Past performance is no guarantee of future success.


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