The recent decision by the people of the U.K. to back out of the European Union is historic, only in that they are the first to leave the relatively young collaboration of countries. What makes it similar to other events in history is that a group of people are choosing to separate from a larger consortium to gain greater autonomy regarding trade, immigration, currency and economic policies.
You will see this “Brexit”, as they call it, all over the media for the foreseeable future and all the uncertainty that surrounds it. The vote to exit was yesterday, but the agreements to be drafted for the conditions and realization will take at least a couple years. While some may view this uncertainty through a negative lense, the people of England believe they have achieved greater independence than they had before. Surely, that is a positive event.
There will certainly be an adjustment period for businesses and local economies in England and Europe as they adapt to the new environment. But, their goals and objectives will remain constant. Continue to provide superior services or products at competitive prices to improve shareholder wealth. This is what has driven our economies and equity markets around the world for over a century. It will continue.
Our focus here remains on how we can best position you for your personal goals and desires. We must acknowledge that these types of events have happened before and will occur again. By maintaining focus on your financial planning and positioning assets appropriately, we feel these events can be minimalized as to their impact on you. The markets will react with volatility in the short term to this longer term decision. Stick with your plan.