How the Brexit affects your retirement fund - What the Brexit means for people in the US

[HAPPY2BME]

Michael Perchick, KVUE 6:51 PM. CDT June 24, 2016

The United Kingdom voting to leave the European Union on Thursday had ripple effects throughout the financial world.

The Dow Jones industrial average fell more than 600 points on Friday, wiping out its gains for 2016 and posting its largest single-day fall since August 2015. With the market falling sharply in one day, some people consider pulling their money from the market.

“What you see right now is uncertainty in the markets,” said Stuart Smith a partner at ML&R Wealth Management. “And because of that, we don't know what's going to happen over the next year or two years as this exit actually takes place. That uncertainty cause a lot of volatility.”

“You should buy low and sell high. Well a lot of small investors do exactly the opposite because they follow the latest news. And they take undue risk based on limited information,” said Robert Duvic, distinguished senior lecturer at the McCombs School of Business at the University of Texas.

Duvic added a diversified portfolio makes it easier to deal with a volatile market.

“Don't make quick decisions,” recommended Duvic. “Diversify. If you have a 401(k), if you have an IRA, you should be diversified across different types of stocks and bonds, large companies, small companies, international.”

“As long as you have a diversified portfolio, you need to stay the course, and not worry about what's going to happen. You have a long-term investment strategy, you should be okay,” Smith said.

Leading up to Thursday’s vote, many polls predicted the UK to remain with the EU.

“When you look at what happened the week leading up to the vote, the markets were really strong and on an upswing. And I think the expectation was that they were going to stay,” said Smith.

An immediate impact was felt on exchange rates between the United States and United Kingdom. When markets closed Thursday, £1 was worth about $1.49. After the votes were tallied and markets opened Friday morning, £1 was worth around $1.36.

http://www.kvue.com/money/how-the-brexit-affects-your-retirement-fund/255488799

[sinkspur]

A Trump victory on November 8 would cut another ten percent out of the DOW due to the uncertainty of what it would mean.   

So, Trumpkins, be careful what you wish for.

[Mod1]

A Trump victory on November 8 would cut another ten percent out of the DOW due to the uncertainty of what it would mean.   

So, Trumpkins, be careful what you wish for.

Please don't turn every thread into a Trump thread. Stay on topic.

[livius]

The relevant point is that Trump and his supporters have been crowing that he's the Anercan version of Brexit, so I think it's fair to mention this. That said, I just read that France is now going to release or send all those "migrants" stacked up at Calais immediately off to Britain. The only reason France was holding them was because of an EU agreement.

So definitely, consider the ramifications of what you wish for.  Which is why nearly two million Brits are begging for a redo.  I'm not an EU fan, btw, but you have to have a reasonable plan for dealing with the problems, and the Leave side appears never to have considered this.

[geronl]

The EU is a very protectionist trade bloc with many ludicrous regulations that the UK will benefit not having, they also can stop subsidizing poorer nations.

[geronl]

So definitely, consider the ramifications of what you wish for.  Which is why nearly two million Brits are begging for a redo.  I'm not an EU fan, btw, but you have to have a reasonable plan for dealing with the problems, and the Leave side appears never to have considered this.

There is nothing good or reasonable about the EU, it should be called the EUSSR

[WAC]

The EU is a very protectionist trade bloc with many ludicrous regulations that the UK will benefit not having, they also can stop subsidizing poorer nations.

What I've seen and observed in poor nations is ....once their government knows they have this assistance they will always require it. Just like the welfare system here...there's no incentive to get out of other peoples pockets. It's the same with Gov. leaders. Look how long the entire world has been sending billions and likely trillions for generations......the only ones who get better off are the Politicians or leaders.

[WAC]

..........I just read that France is now going to release or send all those "migrants" stacked up at Calais immediately off to Britain......... The only reason France was holding them was because of an EU agreement.

Do you think they'll even want to go to Britain now?  They're having all sorts of emergency eetings and no doubt they'll make new laws so that whoever plans on going there won't thereafter. ...On to Germany!

[WAC]

...."An immediate impact was felt on exchange rates between the United States and United Kingdom. When markets closed Thursday, £1 was worth about $1.49. After the votes were tallied and markets opened Friday morning, £1 was worth around $1.36."....

Well that's  not exactly what could be called earth shattering......nothing that wasn't already considered...they knew things would rock and roll for a while...possibly even a couple years, but they're looking a the larger picture once the waves settle.

Britain will be fine.....