Brexit happens. Know your investment plan, and stick to it.
Submitted by Desmond Wealth Management, Inc. on July 1st, 2016For your benefit & reading pleasure, we'd like to share with you this great article that reflects our philosophy, by one of our favorite writers:
By Barry Ritholtz, Columnist - June 24
Brexit! This is not a drill!
The klaxon horns have sounded, and it’s all hands on deck! The British “leave” vote — Brexit in financial media land speak — has forced us all once again to rouse ourselves from our media-induced slumber and get busy getting busy. Pull on your big-boy pants, and sell this, buy that! Hedge, hedge, hedge!
*Sigh*
Or not.
It is my never-ending charge to remind you (once again) that the time to read the card on the seat back in front of you is before the plane takes off. At 30,000 feet, with the engines catching fire, you will most likely have missed the opportunity to think calmly and clearly about your best options.
This is why we plan ahead for events such as Brexit.
I know, I repeat myself, seemingly every other quarter, as we run through this muster drill. Something bad happens somewhere, and markets are unhinged. A substantial sell-off ensues, and all of the usual suspects panic. Once the noise subsides and the markets settle down, everyone wonders what the heck just happened.
My phone in the office rings, as reporters want a comment on the sudden surge in volatility. Not one of them likes my standard response: “This is what markets do. They go up and down, on occasion, violently.”