Written by: Michael Joyce, CFA, CFP
We woke up to the news that the Brexit campaign was successful and that Britain has voted to leave the European Union. This news was somewhat unexpected and markets have reacted rather strongly to the uncertainty brought on by the vote’s outcome. As always, JoycePayne Partners keeps an eye on the long-term and we believe the impact of the Brexit vote on the financial markets could very well be short-term, conceivably lasting only a few weeks.
Indeed, there has been a great deal of hyperbole on both sides of the Brexit campaign, with many fears being overblown over the past few months. Having said that, we recognize that the British exit from the EU could precipitate other longer-term consequences for the European Union. The markets’ reaction to the unanticipated referendum result could very well create opportunities for our clients, which we will evaluate closely. But we do not expect that the opportunity will be as great as it was in mid-February.
It is important to remember that the United Kingdom has a deep, established economy that will certainly recover. We should also keep in mind that the U.S. economy, which is by far the world’s largest economy, is operating at near full employment, with economic indicators and consumer confidence pointing up.
Please contact your financial strategist or me with any questions.