Market update: Breaking up is hard to do

Vote to leave leads to global market declines and higher volatility

“The outcome of the Brexit vote has clearly been a surprise to the markets. The ramifications from this vote are more political than economic in nature. This situation is nothing like the financial crisis in 2008. While financial markets will remain volatile, and possibly be weak for a period of time, history suggests that 6 – 12 months after a political crisis such as Brexit, the markets have recovered their losses and resumed trading on the basis of economic growth and corporate profits,” said Jeff Singer, Chief Investment Officer of Investors Group.

Times of turmoil can often present the greatest opportunities.  Our portfolio managers are already taking advantage of attractive valuations in select markets and stocks.

“As always, perspective can be your greatest ally. The history of the S&P 500 has shown that since 2009, although initial responses to challenges and obstacles is typically negative, overall the market has more than tripled in that period,” said Singer.

Having a diversified portfolio within a long-term comprehensive Plan will help to offset current market volatility and  serve you well as the markets react, respond and digest the news.