What is the Brexit?
You may have heard this term recently in the news, which implied a pending vote by the United Kingdom of Great Britain (England, Scotland, Wales, and Northern Ireland) to leave the European Union, which essentially is a centralized government for 28 European counties.
Read more from The Motley Fool: What is a Brexit and what does it mean for you?
What is happening?
Despite many polls and indicators showing that the UK would remain in the EU, voters shockingly decided to leave. The short term reaction from global trading has markets down overnight mostly due to the unknown of what will happen. For a little context the S&P 500 opened down this morning roughly 2.5%. We will continue to rebalance portfolios, which will hopefully trigger buys into markets while they get pushed down due to this event.
Read more here from Schwab Market Perspective: British Shock What’s Next
What this means for you?
In the Long Term this probably won’t have much affect on you. As a plan is developed for the actual details of the Brexit, market volatility will most likely return to normal levels of volatility. For those who have gone through the financial planning process, your investment portfolio should already be in a position that is appropriate for your age, goals, and tolerance for risk. In a couple years, you most likely won’t remember this event and what it meant to your investments. All and all we believe that the best thing to do right now is stay the course for your long term plan.
Read more from The Reformed Broker: What Investors Should Be Thinking Right Now?