Sunday, 21 August 2016

Post Brexit Investing

With Brexit looming large, has anyone changed their investing approach? Stocks in the U.S. and Europe fell dramatically after the vote on June 23rd but they have rebounded. The S&P was actually showing record highs three weeks after the vote. In the UK, the FTSE 100 index was almost at a 52 week high. Just what is going on?

For the most part, advice seems to be to stay the course and don't make any knee jerk reactions. That's always the way with the value investing approach. It doesn't look like there will be any immediate concerns and in fact there might be lots of opportunity created by the uncertainty. Stocks in the UK may be undervalued due to the concern and you may just get yourself a bargain. You can always look to other markets like the U.S. which is looking particularly strong at the moment as a way to diversify your portfolio and reduce your risk exposure in the long term.

There's some great advice on how to approach Brexit over here which focuses on diversifying your portfolio and potentially looking for stock bargains in a post Brexit world.

Personally, I haven't changed my investment approach and have looked at this as a great opportunity to make some money! Much of the volatility has been created due to the uncertainty but I'm optimistic with new Prime Minister Theresa May in charge that things will settle down.