Unless you have been living under a rock, you've likely heard that Britain has voted to leave the European Union. The 'Leave' vote came as a surprise to the markets, as evidenced by the lack of a sell-off in the last few weeks, capped off with a strong rally into yesterday's close. Unsurprisingly, global financial markets, and especially European markets are experiencing extremely high levels of volatility today.
These are the moments, people- the moments that define the difference between a successful vs. an unsuccessful investment plan. Your advisor, whoever she/he may be, has likely coached you and warned you that moments like this would occur. But it's difficult to remember those lessons when you're staring it right in the teeth.
It's OK to be worried, it's OK to have questions, and it's a great idea to pick up the phone and call or write an email to your financial professional. If they're worth their salt, they will help talk you off the ledge and remind you that your portfolio is positioned to meet your goals of the coming decades not days, weeks or even months. Markets might continue to get worse, or they might shrug this off in a couple of days. We just don't know. It's not something we can control. What we can control is our emotions. Remember that investing for retirement is a marathon and not a sprint. Take a deep breath, and go enjoy the beautiful summer weather.
While you shouldn't make any snap decisions based on this news, there's nothing wrong with staying informed. Here is a great article that summarizes the recent event and explains some of the possible ramifications. Just remember, mainstream news outlets have an innate need to sensationalize everything in order to generate advertising dollars. Try to pull out the relevant info without succumbing to the drama.
Sam DiNorma, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).