Gary’s guide to the Brexit

Now that the result is known, the financial Armageddon which was predicted, promised & threatened…………….hasn’t materialised.
What we now seeing is a short term initial reaction to what has been described as the greatest political earthquake since the end of the Second World War. As the experts argue over what might happen & they are just guessing, as know one has a clue. How can investors know what to do?
The first thing is not to panic! Keep calm & continue to stay invested in the markets. The worst thing you can do right now is to pull your money out. You will simply be crystallising your current paper loss.
If you are investing a regular amount each month, then carry on as normal. You will actually benefit from the current situation. This is because your monthly investment will now be buying more units in your fund(s). Then when the unit price rises, your investment fund will be worth even more.
If you are taking an income from your investment, then try to see if you can reduce this in the short term. Just until the markets recover. Otherwise you will be taking the same money from a smaller fund. This will compound any loss that you currently have.
So where does this take us going forward? As know one has been here before & none of the “experts” have a clue, the only place to look is to history. Financial markets have a habit of repeating themselves. When we had the European Exchange Rate Mechanism (ERM) fiasco, the experts predicted doom. In fact the opposite happened. When the Euro was formed, the experts predicted doom, if we didn’t join it. The opposite happened. Many experts predicted doom if we voted to leave the EU.
So guess what………..the sun still came up, the world continues to spin & based on past performance, I am sure that the economy will be just fine. The basic economic fundamentals of our economy haven’t changed. We are still the World’s 5th biggest economy. The lower pound will benefit exports & tourism into the UK. New opportunities will be created from our new freedom to trade. And I am sure that in the boardrooms of all the major European companies who sell their good to us, that this week they will be talking about how their own governments need to get a good trade deal with the UK, in order to preserve their own sales to us.

If you would like to discuss your current investment concerns, please get in touch.