Last night, the UK voted to leave the European Union (EU). Although the polls had been tight leading up to the vote, the decision was ultimately a surprise to many and, in particular, the worldwide capital markets. Since the journey ahead is unprecedented for the UK and EU, it is clearly too soon for anyone to fully understand the ramifications. What we do know is that change is a constant in the world and clear-headed, long-term planning is what helps steer our strategy.
It is important to understand the changes that will take place do not happen immediately. It will take the UK two years to negotiate their exit, which will likely result in prolonged uncertainty. We also know that markets typically overreact at the onset of uncertainty. Making long-term financial decisions during the initial reaction phase can be a mistake. For the clients of NNP, the question always relates back to how change affects one’s long-term plan. Having this plan is what helps us properly guide you through good times and bad. It can also lead us to take advantage of opportunities created by uncertainty.
We recognize there will be challenges, and we will be here to see our clients through them. We have much more to learn and consider and will be doing that over the following days, weeks and years. As we do, we will provide the advice we believe to be in our clients’ best long-term interests. We will keep you informed as the situation progresses.
Nachman Norwood & Parrott
Wealth Management Consultancy
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
The views expressed by the author are his own and do not necessarily reflect the opinion of Wells Fargo Advisors Financial Network or its affiliates.