A Brexit Brief
We know you’ve been inundated by political and financial pundits weighing in on Great Britain’s vote last week to leave the European Union, so we’ll be—yes—“brief.”
We’ve heard all forms of (we think, ill-advised) suggestions on quick moves to make now to take advantage of the way most market leaders were caught leaning the wrong way, along with dire pronouncements to sell everything and go to into cash. But, the consensus in thoughtful quarters—and what has played out in the days following—is that the impact of the Brexit event will be felt more strongly in the UK and Europe than in the US, and that it
is anyone’s guess as to how, or if, this decision will affect longer-term global and US markets.
The worst byproduct of this event is really
uncertainty—always a drag on
financial markets—and the volatility that has resulted from investors responding
to the latest news, poll, or blog. Our Presidential election (and several coming
up in the European Union next year) won’t help calm nerves, or provide much
clarity in the days ahead.
With politicians and talking heads shouting at us about the possible impact on
your 401(k) of Brexit, the latest terrorist attack, or the most recent Supreme
Court decision handed down,
what we all really need—especially in the age of the 24-hour news cycle—is
calm, objective analysis of overall market conditions, not current events .
—
Kevin L. Coppola, President, Compass Investors, LLC
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