Salvini Financial Planning on Brexit - June 24, 2016
We are waking up to the news that the majority of British citizens voted in favor of leaving the European Union and Prime Minister David Cameron resigning. As expected the stock market opened with a major drop but is currently inching back up. I can’t pretend to say that I know what the future will hold as a result of Brexit but I expect several weeks, possibility months of market reaction. Not necessarily all in the downward direction. Change and unexpected news brings volatility and volatility brings opportunity.
US stocks are currently down about (2.5%) and Barclays Aggregate Bond Index is up about .6%. I will be keeping a close watch but since we have approached your investments strategically the best reaction is likely no reaction at all. If you are in the process of systematically investing excess cash on hand, continue to follow the plan. Dollar cost averaging into the market when there is volatility can be advantageous.
Brexit: Vanguard's Perspective - June 27, 2016