Brexit and a Steady Course




Pathways Advisory Group. Inc.
Michelle Carter, CFP®

Last night, in a historic move, Britain voted to exit the European Union. This decision was followed by a tumultuous day in the markets.

As the United Kingdom sets sail into unchartered political waters, we take comfort that our course is steady and certain. With all of the unknowns swirling around, we rely on the same truths we always do...

- The market doesn't like change. It doesn't like surprises. Many thought this vote would turn out differently, thus the unexpected news moved the market, as it often does.

- This is not the first time upheaval in one area of the world caused market movement worldwide, and it won't be the last. You don't have to remember too far in the past to find an example of this. Think China (January 2016) or Greece (Summer 2015).

- This is not the time to make a move in allocation, and we are fortunate we don't have to. Instead, we take comfort in everything we've done to prepare ourselves. All those market discussions during meetings, looking at historical rates of return, demonstrations of various Portfolio allocations during down markets, adjusting when life changes necessitate it, diversification, working to find that sweet spot that allows you long-term growth with as much peace of mind as possible... all that hard work has been done (and is ongoing). We don't have to react to what happened last night. We are prepared.

Withdrawing from the European Union will be a long process for the UK. It will be interesting to see what happens from here. How long the ramifications of this will be felt in the market is uncertain. What is certain are the rewards given to patient investors, the ones whose course is steady even in rough waters, and whose eye stays firmly on the horizon.

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