After Britain voted to exit the EU, economic and financial shockwaves were felt throughout Europe and in the global markets. Stocks, not just in London, but across Europe, experienced their worst dips in several years. In fact, the British pound hit the lowest level in 31 years since 1985 and also lost its AAA credit rating. Also, London’s FTSE 100 index experienced a 3.15% loss while the French CAC went down to 6.24% and Germany DAX dipped to 7%.
These unexpected market tremors have made many investors to desperately review and evaluate their personal investments in Britain, and anticipate anxiously about the future and wondering whether or not to pull out now.
This is a crucial decision for investors at this point. If you’re interested in investing in the UK, then this post might help you as we walk you through what industry experts and financial advisers might think would be right for investors to do at this point:
Though Brexit is shocking and has created a financial turbulence but experts have been reported to say that it’s important that investors wait and watch. The market at this stage will be volatile. However, it is advisable for investors to leave their investments alone and stomach the market twists & turns if you want high-returns. Pulling out now from the market will do you no good. In fact, it will only lock-in the drop and result in losses, and no investor wants that.
Here, what investors worldwide need to understand is that the future is a big question mark and nobody so far knows the implications. Right now, investors are panic-stricken and they are potentially wondering about the future implications of the Brexit fallout. It is now advisable that investors don’t get succumbed to fear and speculations and stay level-headed. Investors should show confidence in their portfolios and should not take impulsive decisions when they see the stock market abruptly plunge.
Besides this, it’s important for investors in the US to watch the market movement in the UK before they jump to a conclusion and decide to pull out their investments, simply because the vote for Brexit will take at least 2 years to be negotiated with the European Union. Though this may urge people to think that it will be two years of market volatility and uncertainty, but at this stage, investors still can’t be sure. Investors can think of lowering the impact by hedging the risk and rebalancing their portfolios but completely exiting the UK market and pulling out entirely may not be the best decision after all.
Since investment is all about informed decision making, it is advisable to take some time to see the market movement and assess it, especially if you have long-term goals. Panicking during market downturns can mostly result in making irrational and uninformed decisions. Sticking to the famous World War II era mantra as suggested by the British government, works best for investors worried about Brexit: ‘Keep calm and carry on.’