The Brexit result became clear during the night as the UK public voted to leave the European Union.
A surprise to the Stock Market
This was something of a surprise to the UK Stock Market, which in the week preceding the vote, had seen strong rises, attributed by many commentators to the belief that a remain vote was likely to succeed.
At the time of writing, the FTSE 100 Index has fallen to its position of around 10 days ago, accompanied, of course, by much media hype and speculation.
Above average volatility
It is fair to say that during the period while the UK exit from Europe is managed and negotiated we do expect continued above average volatility as markets simply do not like uncertainty.
However, such volatility should not take away from the core principles underlying the portfolios we recommend and monitor.
Our portfolios are built to meet medium and long term objectives, and are hugely diversified across a wide range of global markets and asset classes, reducing exposure to any one country, region or asset class. Fund managers will continue to adjust portfolios, managing risk on behalf of our investors.
We urge clients therefore to keep these facts in mind, particularly in times of short term volatility.
In the coming days, we will be discussing with partners and fund managers the wider economic implications of the vote to leave, and will communicate with you as things unfold.
Talk to us!
In the meantime, if you would like to discuss your situation personally, please contact your Cullen Wealth consultant, who will be pleased to talk to you.