How should investors respond to “Brexit”?
By Sarah Cecil
As you know by now, the United Kingdom (U.K.) has voted to leave the European Union. The “Brexit” vote is expected to have major implications for Britain’s trade and economic relationships – but how might it affect you, as an individual investor?
At first glance, you might be worried. After all, right after the results came in, we saw a sharp decline in stock markets around the world, including here in the United States. And we may well see more volatility in the near term. But by taking a step back and looking at the big picture, you might see that the outlook for investors is nowhere near as gloomy as you may have thought.
Here are some suggestions for maintaining your perspective:
Be patient. Despite the Brexit vote, it’s not so simple for the U.K. to just pack its bags and bid “adieu” to the European Union. In fact, it may take three or more years before the U.K. actually departs. This extended time period can give financial markets a chance to absorb the new reality – while giving investors time to ponder their long-term strategy.