Our Take on #Brexit and Your Investment Plans

June 24, 2016

 Make Your Own #Brexit From Media Fear

 

I wanted to send a few quick thoughts on Brexit today, not because I think too many of our client base is concerned, but only because of the overwhelming amount of fear that has been stoked by the news due to the vote for Britain to leave the E.U.

I try daily to keep the irrational fear and messages from the media out of my world, and look for sources that can provide rational and thoughtful analysis of markets. Working mostly from around the news and media, this isn’t an easy thing to do! And I’m sure many of you are in a similar position, whether it is the talk show hosts on your drive in to work, or the background noise from a television at home or in the office.

The markets are down today. And we can tie it to this event. Should we conclude then that stocks – international and domestic – will continue to slide?

I’m not so sure. There are powerful institutions that stand to lose in the short-run from this vote. However, having spent plenty of time watching my YouTube channels (European politics are fascinating… especially if you think our elections are coarse), I think these institutions, and others, stand to win much greater amounts over the long-run.

We’re told there are massive costs that Europe will have to deal with. I see it more as an investment, and that the positives outweigh any costs, and by a large margin. Here are just a few:

  • Being able to choose what’s best for you, rather than being told what to do by someone who you didn’t vote for, is always good for entrepreneurs.

  • More trade means more can access more goods and markets. The E.U. trading agreements meant Britain could not make independent trade deals, even if they would be beneficial.

  • The massive bureaucratic layers of the E.U. could not have been a benefit for small business. Small business innovates, lowers costs, and forces change.

  • According to Daniel Hannan – a British representative on the E.U. who will lose his job due to the vote, and yet voted for leaving – since the market was aware of the slight possibility of Britain leaving, foreign investment and job creation in Britain has surpassed the combined total of the entire E.U. member states. Companies know a free Britain will lead to more opportunity for long-term investors.

The potential for markets is significantly higher today. And, there is no reason to think just a few developments could lead to a massive turn positive. We want to be invested for that turn. In the meantime, we are appropriately diversified into growth, preservation, and stable assets.

If you’re finding yourself listening to the negative news, or you are wondering if you should time the markets, remember our plans are to only have long-term assets in the markets. Where will the markets be in a few years?   

And, if you need to cut the cord on some of the news channels that feed this sort of fear here are a few things I do:

  • Discover YouTube. There are a lot of great content producers out there today who give positive, and thoughtful responses on YouTube… in any topic! Yours may not be markets and investing (or hilarious E.U. political discussions!). A $30 streaming box has replaced my $100 cable bill, and setting up a dozen or so channels that speak to you will be far more informative than anything you will have on as background noise.

  • Have a “go to” person / author to listen to. Dr. Wayne Dyer has been my favorite go to person whose messages I know I’ll find uplifting, even if it’s just background noise I won’t have to worry about the fearful noise creeping in. If you’re an Apple product user and have never looked at Podcasts, you may be surprised how many authors and other celebrities that have podcasts.

  • Get away from it. Take a break, take a walk, take a few breaths and switch your thoughts to something new.

     

     

     

     

     

     

     

     

     

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