Brexit – The day after – stay the course

So Brexit is done. Is it time to jump ship on the markets? No! The talking heads declared this morning that markets are in a “free-fall”. Down 3% – is that a free fall? Fact of the matter is that the markets are not really “down”. They are just back to their levels of last week after some heady talk of Brexit pushed up the indexes some. Other than that a drawdown of 3% is nothing unusual – it can happen several times in a year. And volumes (stock traded) are nothing unusual – certainly far lower than back in September of 2015, when the index fell 10% in a few days. Since then it has bounced back quite nicely, and is up for the year. What is important to remember is that investing is or should be like watching grass grow. An investment portfolio should be positioned for long term growth, and intermediate fluctuations ridden out. Study after study has shown that more damage is done by reacting to news driven stock market movements, than staying the course with a strong investment philosophy and a well balanced porfolio that implements that strategy.

S&P – Day after Brexit
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