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Brexit, S&P 500 And Your Money

Published 06/24/2016, 08:45 AM
Updated 05/14/2017, 06:45 AM
DX
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This is a truly historic day. The Brexit votes have been tallied and the UK will leave the European Union after 40 years. What started as a political ploy has ended in a lesson. World markets are reeling without even really knowing what the implications will be. That is markets though, sell first ask questions later.

You will be bombarded with opinions and hyperbole over the next week. I hope that my thoughts will not be classified in that category as well. I do not know what will happen as a result of the Brexit. I do know many things though. It will take a long time for the UK to unravel itself from the EU. As that happens more and more pieces of uncertainty will become clear. Until that time when all is clear, the US economy is still going to move forward as if not much has happened. Global companies will see some impact from US dollar movements, but those have been muted early on.

The UK economy is about 4% of the world economy. And it is not going away. It may face headwinds but the biggest problem right now would appear to be fear of uncertainty. The impact to the US economy should be minimal. A 3-4% downward move in the US markets in this context may then be considered a buying opportunity. Or not. Where do you and your money stand?

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