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We’re seeing plenty of market volatility, panic and plenty of “pundits” talking about how the end is neigh for the world today as a result of the “Brexit”. The Brexit, which I mentioned yesterday, is a portmanteau of the words “Britain” and “Exit” and is the nickname for the British exit of the European Union. It was a simple question "Should the United Kingdom leave the European Union?" And yesterday, more than 30 million citizens of the UK surprised most of the world by answering "yes" in a 52% to 48% vote.
Hedge fund managers, traders, and speculators are heading for the hills (or trying to) in the face of economic and political uncertainty. What does this mean for the future of the E.U? Will other countries leave? Is another recession on the horizon? Most importantly, what does it mean for you and your life and your portfolio?
What Does It Mean for You?
To be perfectly blunt- ABSOLUTELY NOTHING. The only question of the above that really matters is how it relates to your life goals. All else is noise. The Brexit and related panic is an opportunity to put idle cash to work, but completely irrelevant to your long term life goals. As I said yesterday, if your goals haven’t changed then you should not make changes as a result of any “news” event.
In the short term, it means market volatility as many weak hands and leveraged investors are purged from the market. We are seeing a drop currently of approximately 2% to 3% in the market and may see more over days even weeks- the reality is no one knows exactly how markets will react in the short term.
These events, however, are great for the long term health of markets as they are akin to pruning a tree of the excesses and panicked people and allow for the continued great long term equity returns over our lifetimes.  Have no doubt, this, like all other “crisis” before it, shall pass.
The most important thing to do during these kind of times: Nothing. These are the exact times to remember that investor behavior trumps all else when it comes to investing and is why I am here as your advisor.
If you are concerned, would like additional information or simply want to talk it out, please don’t hesitate to reach out anytime. I’ll leave you with an awesome brief 5 minute video that I encourage you to check out as it summarizes the amazing progress and what an amazing time it is for the world. The “doomsayers” are and always will be wrong when it comes to the progress of our world. So shut off the TV, stay away from the pundits of pessimism, enjoy the short video and your weekend!
Gavin Gleason, President
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The Gleason Group 9418 Norton Commons Blvd, Suite 100 Prospect, KY 40059

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