June 28, 2016

The Brexit Effect – Financially Simple

“The Brexit Effect,” With all the uproar lately of Brexit, your thoughts may have turned to wondering just how much your portfolio would be affected? As with most major world events, the stock market reacted to U.K. vote to leave the European Union by dropping; the Dow came in 3.4% of it’s value and the S&P lost 3.6% when the announcement came on June 24th. Just like any other time the markets react negatively, you have a couple of options on what to do next. Nothing The old adage, “Silence is golden” is a perfect metaphor for when the market turns on you in an unfavorable manner. Sometimes it’s wise to say nothing or in this case, do nothing. Thinking the best thing to do is pull your money and run? Not so fast; the more likely scenario is that you’ll end up regretting it. History shows those that panic during market downturns end up with large losses that jeopardize the retirement aspirations. Re-balance Refocus the asset allocation, so you’re meeting your goals. It’s never a bad idea to look at where you’re losing money and possibly reinvest in areas you feel more comfortable while stocks rebound. If you’re losing money, you may […]