The world’s eyes were in the UK over the past few weeks, and those with vested interests in the world markets—such as those in retirement planning in Irvine, California—wondered just how likely an exit from the E.U. was. In the run-up to the referendum on June 23, cooler heads seemed to be prevailing, and a majority of interests predicted the UK would choose to remain.
The ensuing financial downward spiral the following morning at least served to underscore just how unprepared most were for the UK’s decision to leave. Investors everywhere felt an immediate repercussion from the island nation’s decision, and now face a future which is still largely unknown.
It needs to be said that the future is just that—unknown. Whether the shockwaves continue to be felt, or the market downturn turns out to be simply a predictable and reversible knee-jerk reaction to the UK’s unprecedented choice, will be answered in the coming weeks and months. It’s good to realize that, even though the UK’s decision is unprecedented, the world markets falling several percentage points is not.
Still, there will be many who are thinking, “What do I do now to protect my money?” Here are a few general points to consider.
- Let’s Breathe—Even we here in the U.S. likely had a set of emotional reactions to the decision, even though on a primary level, it doesn’t affect our day-to-day lives. The very first step to protecting yourself and your money over the coming months is to try and comb out any strains of thought that are largely built on emotion. Selling all your stock in British companies would be an example of an emotional decision.
- Learn—It’s at volatile times when we stand to learn most about the resiliency of our portfolio. In the coming months, keep an open eye and take notes on how your portfolio is faring. Then and only then can you be able to confidently make choices that will benefit your savings over the long term.
- Look for opportunity—The fact of the matter is it’s so soon in the process of Britain leaving the EU that nobody knows what’s going to happen. The current market dive is based solely on speculation and fear, and so can rebound just as easily. As leaders meet to try and figure out just what will change, it’s become clear that it will likely be a while—possibly a year or more—before any substantive change in economic policy comes to fruition. This may position you to find some excellent buying opportunities in the meantime. (As always, speak to a professional before making any big changes to your portfolio!)
Above all, talk to your trusted financial planner, who will know what changes, if any, to take as the volatility unfolds. Don’t trust your planner, or don’t have one? Well that’s an even bigger problem. It’s crucial to have someone knowledgeable, whom you trust to give you the right information. So if you’re retirement planning in Irvine, reach out to Miramontes Capital. We’re able to give you guidance no matter what the markets look like.