The Bettr Blog

UK’s EU Referendum Result

Jun 27, 2016 | Brexit, Investing, Stock Markets

[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” text_align=”left” background_animation=”none” css_animation=””][vc_column][vc_column_text]Last Thursday the U.K. voted to quit the European Union after more than four decades in a stunning rejection of the Remain campaign’s arguments. While there has been much speculation leading up to and since the vote, many of the longer-term implications of the referendum remain unclear, as the process for negotiating what a UK exit may look like are just beginning.

Undoubtedly over the coming weeks and months we will see market turmoil (as markets react to this uncertainty) but as ever I would urge caution in altering your long-term asset allocation. We have seen markets fall in times of uncertainty before but they have always recovered (we expect this time to be no different). It remains difficult to know when these good outcomes will actually happen but by attempting to try and time the right moment to invest or redeem, one risks not enjoying the potential benefits of an eventual market recovery. Many of those who exit the markets miss the recoveries. What we have often seen in the past is that investors who remained in well-diversified portfolios have been rewarded over time.

History has shown us in times of uncertainty that doing nothing is nearly always the right thing to do. In a speech he gave in 1963 the great financial analyst Benjamin Graham said: “In my nearly fifty years of experience in Wall Street I’ve found that I know less and less about what the stock market is going to do but I know more and more about what investors ought to do.”

Source: Securities In An Insecure World, A Lecture by Benjamin Graham,” delivered at Town Hall, St. Francis Hotel, San Francisco, CA, November 15, 1963


Disclaimer: This document is intended for informational purposes and no action should be taken or refrained from being taken as a consequence of it without consulting a suitably qualified and regulated person.  It does not constitute financial advice under the terms of the Financial Services and Markets Act 2000. It is not an offer to sell, or a solicitation of an offer to buy, the instruments described in this.

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investment, when redeemed, may be worth more or less than its original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.